Ethereum recently reached a new record price, driven by signals of interest rate cuts from the Fed Chair and large inflows from ETFs and whales.
This uptrend creates significant momentum for Ethereum, while also fueling the competition for market capitalization between Ethereum and Bitcoin in the near future due to strong demand and institutional acceptance.
MAIN CONTENT
Ethereum surpasses the 4,878 USD mark, striking a new high after the Fed's interest rate cut signal.
ETF and whale inflows surge, pushing ETH demand to record highs.
Ethereum is expected to surpass Bitcoin in market capitalization.
What factors are driving Ethereum's record price increase?
Ethereum surged over 15% in a day, reaching a new record above 4,878 USD, surpassing the previous peak in November 2021. The main momentum came from Fed Chair Jerome Powell's remarks about the potential for interest rate cuts next month, creating positive expectations in the global financial markets.
Trader Peter Brandt briefly comments on Ethereum's record high: 'Strong'. He also predicted significant breakout potential for Ethereum since May. This is a clear testament to the positivity in the technicals and market sentiment surrounding this cryptocurrency.
Brian Armstrong, CEO of a major cryptocurrency exchange, also congratulated the Ethereum community on this breakthrough. This is not only a price record but also reflects the fastest growth of an asset with a market cap reaching 500 billion USD since 2021, according to expert Juan Leon.
What is the impact of ETF inflows and whales on Ethereum's price?
After a series of net withdrawals, Ethereum ETF funds have attracted back over 600 million USD in the past 2 days, showing strong interest from institutional and high-net-worth investors. This recovery significantly contributes to the strong price increase of this cryptocurrency.
Whales, investors holding 10,000 ETH or more, have also increased their holdings by over 200 addresses since the beginning of July. This reflects a strong accumulation trend among large investors, adding 'buying power' to boost Ethereum's price.
Can Ethereum surpass Bitcoin in the market cap race?
The fact that businesses are accumulating Ethereum in their treasury, now nearing 20 billion USD, shows increasing acceptance. Expert Tom Lee believes that the likelihood of Ethereum surpassing Bitcoin in market capitalization is 'very high', thanks to the widespread deployment of smart contracts and the robust growth of the DeFi ecosystem.
Standard Chartered Bank predicts that Ethereum's price could reach 7,500 USD by the end of the year, with the potential to hit 25,000 USD by 2028. This is a reliable basis for the expanded use of Ethereum in practical applications and the focus of institutional investors.
Is there a possibility of a short squeeze occurring with Ethereum?
Despite receiving positive support, net short positions on Ethereum futures remain at record highs. Analyst Cas Abbé warns that if Ethereum exceeds the 5,000 USD mark, a large-scale short squeeze could occur, causing prices to spike rapidly.
Meanwhile, Bitcoin's dominance in the cryptocurrency market has dropped below 60% for the first time in 4 months. Expert Benjamin Cowen predicts a wave of return to Bitcoin will occur after Ethereum's peak, starting with Bitcoin's correction in September and continuing to grow in October.
"Ethereum is building momentum from returning ETF inflows, whale accumulation, and robust business adoption, setting the stage to challenge Bitcoin's position."
– Cas Abbé, Financial Analyst, 2025
Frequently Asked Questions
When did Ethereum reach a new record price?
Ethereum first surpassed 4,878 USD in August 2025, marking a historic peak since November 2021.
What is the main reason for Ethereum's strong price increase?
Signals of interest rate cuts from the Fed Chairman, along with large inflows from ETFs and whale investors, are driving Ethereum's price up.
Can Ethereum surpass Bitcoin in market capitalization?
Financial experts predict that Ethereum is likely to surpass Bitcoin due to the adoption of smart contracts and the growing DeFi ecosystem.
What is a short squeeze and could it happen with Ethereum?
A short squeeze is the pressure to cover short positions when prices rise; if Ethereum exceeds 5,000 USD, this could be one of the largest short squeezes.
How will Bitcoin react after Ethereum's peak?
Bitcoin is expected to make a slight correction in September, then rebound in October, as inflows return to this cryptocurrency.
Source: https://tintucbitcoin.com/peter-brandt-danh-gia-ethereum-4878-usd/
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