Ethereum price surges, reaching a new high in 1384 days
In the ever-changing landscape of financial markets, Ethereum shines like a dazzling new star, once again sparkling after 1384 days. On August 23, after Federal Reserve Chairman Powell delivered a 'dovish' speech, market expectations shifted dramatically, with expectations for a rate cut in September soaring, causing the entire dollar asset market to heat up. Ethereum took the lead, rising as much as 14% within a few hours, hitting $4887 and successfully refreshing its historical highest price since its inception 11 years ago. Its market cap also broke through $586 billion, jumping to 25th place in the global ranking of tech companies, surpassing well-known firms like Mastercard and Netflix.
Recalling the previous cycle, Bitcoin was the first to complete a glamorous transformation from a retail asset to an institutional asset. Now, as Ethereum breaks new highs, it may symbolize an important milestone in its journey toward a 'sovereign narrative moment.' Wall Street veteran Tom Lee vividly likened this strategic layout to a 'sovereign call option,' meaning that as Ethereum is widely applied in the global financial and AI infrastructure sectors, companies holding substantial Ethereum chips will occupy a unique advantageous position.
Sean McNulty, Head of Derivatives Trading at digital asset brokerage FalconX Ltd for the Asia-Pacific region, pointed out that funds are flowing from Bitcoin to Ethereum. This migration of funds is driven by several factors, including strong inflows into spot ETFs, ongoing corporate acceptance of Ethereum, and an overall positive trend in the stablecoin market, resulting in a significant positive shift in market sentiment.
This price breakthrough for Ethereum is certainly not accidental. The change in the macro environment has provided crucial support. The weakening of the U.S. job market and the decline in core inflation have led to a sharp rise in market bets on the Fed cutting rates this year. Against the backdrop of a gradually shifting policy focus towards 'moderate easing,' risk assets have welcomed benefits from lower funding costs and improved liquidity, combined with an influx of institutional buying and the switching narrative logic of Ethereum itself. This new high not only represents a breakthrough in price levels but also heralds the arrival of a cyclical turning point.
