Ethereum – the second-largest cryptocurrency in the world – has just marked a historic milestone by surpassing its all-time high (ATH) of 4,878 USD, set in November 2021. Last Friday, ETH broke through this important resistance level before experiencing a slight correction. Since mid-April, the price of Ethereum has increased by more than 300%, demonstrating the strength of cash flow and the returning confidence in the cryptocurrency market.
The Return of the “Giant” – Momentum from Institutional Cash Flow
This growth is not only driven by retail investors but is also the result of a wave of institutional capital flowing into Ethereum through various channels. More and more public companies are beginning to hoard ETH, Ethereum-related ETFs are attracting billions of USD, and, more importantly, the legal environment in the U.S. has become more favorable than ever.
Arthur Hayes – co-founder of BitMEX and one of the famous crypto investors – stated that this is just the beginning, while predicting that ETH could reach 20,000 USD in this cycle.
New Policy – A Boost from Washington
Last July, the crypto industry in the U.S. saw a major turning point with Congress passing the Genius Act, allowing traditional financial institutions to issue their own stablecoins. This is seen as a foundational factor helping to expand the blockchain ecosystem and increase the demand for Ethereum – where over 143 billion USD in stablecoins is currently circulating, accounting for more than half of the total global stablecoin value, according to data from DefiLlama.
In addition, the SEC also announced the framework of the “Project Crypto” to alleviate legal ambiguity for blockchain projects. SEC Chairman – Paul Atkins – affirmed:
“Despite previous views, the majority of cryptocurrencies are not securities.”
Moreover, in August, U.S. President Donald Trump signed an executive order allowing pension funds to invest in digital assets – a move that opens up a massive cash flow from long-term institutional investors.
ETF & Treasury – Two Main Drivers Pushing ETH Prices to New Heights
Spot Ethereum ETFs are becoming a crucial driver for the price surge. In August alone, these ETFs consistently attracted capital, with a record of 1 billion USD in a single day, according to data from Coinglass. If based on the persistent cash flow model of previous Bitcoin ETFs, Ethereum can fully expect stable and long-term buying pressure.
At the same time, Ethereum treasury companies are also contributing to strong demand. Names like BitMine, SharpLink Gaming, and ETHZilla currently hold nearly 3% of the total ETH supply, equivalent to about 19 billion USD. BitMine alone has purchased over 7 billion USD in ETH and is raising an additional 20 billion USD to continue accumulating. Led by Wall Street strategist – Tom Lee, BitMine is becoming a model for the corporate thirst for Ethereum.
Outlook – Is the New ETH Journey Just Beginning?
In addition to the above factors, information that Fed Chairman Jerome Powell hinted at the possibility of lowering interest rates in September became the “last straw”, triggering a breakout that pushed Ethereum above its ATH.
With a solid foundation from institutional cash flow, a positive legal environment, and significant milestones recently achieved, Ethereum is entering a completely new phase. Will the target of 20,000 USD predicted by Arthur Hayes become a reality?
Currently, investors are closely watching every movement of ETH – the currency expected to lead the next wave of growth for the entire cryptocurrency market.
