ETH broke above its November 2021 record high, and analysts say a dovish Federal Reserve and institutional adoption will send Ether well above $5,000.
Key takeaways:
Ethereum has rebounded by over 250% from its April lows.
Fed Chair Jerome Powell’s dovish stance is fueling the ETH price rally.
Bitcoin’s crypto market share has dropped below 60% for the first time since March.
Ethereum’s native token, Ether
ETH$4,740: ETH reached a new record high on Friday, crossing above $4,867 on Coinbase for the first time since November 2021.
Ether price is up 250% since April
ETH jumped by around 14% on Friday, just as Federal Reserve Chair Jerome Powell raised the odds of a 25-basis-point interest rate cut in September. That brought ETH’s gains to over 250% when compared to its April low at $1,385.
“The stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance,” Powell said during his speech at the Jackson Hole symposium on Friday.
ETH DATs keep stacking, and Powell turns dovish:
Ether markets are further benefiting from renewed inflows into its US-based ETFs. On August 21, these funds attracted $287.60 million worth of capital, following four days of outflows.
As of Friday, Ether ETFs were collectively managing over $12.12 billion worth of assets.
Ethereum has also gained significant momentum through growing ETH treasury adoption by corporations.
Over the past month, corporate Ethereum treasury firms have acquired roughly $1.6 billion worth of ETH, with BitMine, SharpLink, Bit Digital, BTCS, and GameSquare among the most active buyers.
As of Friday, these holdings had ballooned to over $29.75 billion, according to data resource StrategicETHReserve.xyz.
Ether is increasingly being viewed less as a speculative token and more as a utility-rich reserve asset, says Ray Youssef, CEO of finance app NoOnes.
Standard Chartered has upped its year-end ETH price target to $7,500 from $4,000 and $25,000 by 2028. Some analysts say that the ETH price can reach $13,000 in the coming months.
According to analysts at Hyblock, market demand for ETH is likely to continue outpacing available supply.
Bitcoin dominance decline ushers in “altseason”
The rally in ETH has also coincided with a notable drop in Bitcoin’s market dominance.
As of Wednesday, Bitcoin’s share of total cryptocurrency market capitalization dropped below 60% for the first time in four months. At its yearly high, #BTC$115,711 controlled 66% of the crypto market share.
Ether fund flows are also reflecting bullishness on ETH in the market. Ethereum-focused investment products attracted $2.86 billion in the week ending Aug. 15, ahead of Bitcoin’s $552 million inflows in the same period, according to Coin. Shares the weekly report.
On a month-to-date basis, $ETH fund holdings have swelled by more than $2.96 billion, while BTC products recorded $21 million in outflows.
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