After nearly four years of silence, Ethereum has finally welcomed a historic breakthrough.

On August 23, Federal Reserve Chairman Powell released a clear 'dovish' signal at the Jackson Hole annual meeting, igniting strong market expectations for a rate cut in September. Subsequently, risk assets surged across the board, with Ethereum skyrocketing 14% in just a few hours, reaching a peak of $4,887, setting a new record since its inception 11 years ago, with a total market cap exceeding $586 billion, surpassing Mastercard and Netflix, entering the top 25 global tech companies.

📈 If the last cycle saw Bitcoin complete its leap from 'retail asset' to 'institutional allocation', then today's ETH stands at a new starting point of 'sovereign narrative'. Wall Street analyst Tom Lee compares it to a 'sovereign call option' — when the global financial system and AI infrastructure fully adopt Ethereum, those giants who position themselves early will hold strategically significant positions.

Sean McNulty, Head of Derivatives for FalconX in the Asia-Pacific region, pointed out that behind this rally is the shift of funds from Bitcoin to Ethereum, driven by three factors: 📊 Continuous net inflow into spot ETFs, increased allocation by corporate finance departments, and the expansion of the stablecoin ecosystem. It can be said that Ethereum's new high is not 'late', but rather waiting for the convergence of the three major variables: macro, funds, and policy at the same point in time.

🔑 Macro Catalysts: Rate cut expectations ignite the market

Weakening U.S. employment data and a continued decline in core inflation have led the market to generally bet that the Federal Reserve will begin rate cuts within the year.

Powell even rarely admitted that 'the risk balance has shifted', indicating that while inflation pressures remain, job deterioration can no longer be ignored. CME tools show that the probability of a 25 basis point rate cut in September is close to 90%. This means improved liquidity and decreased funding costs — risk assets naturally benefit first.

🏦 Public companies 'buy buy buy'

Another highlight of this market is the increasing number of U.S. companies incorporating ETH into their balance sheets.

As early as May 27, Nasdaq-listed company SharpLink Gaming announced PIPE financing of $425 million, most of which will be directly used to purchase ETH as a long-term reserve. The lead investor is Ethereum infrastructure giant Consensys.

Subsequently, more and more treasury companies followed suit, forming a new 'ETH treasury trend'. As of August, 17 companies hold nearly 1.75 million ETH, with a total value exceeding $7.5 billion. Among them, Bitmine purchased 833,000 ETH, accounting for about 1% of the global circulating supply, directly becoming the largest publicly listed ETH treasury company in the world.

This model is different from Bitcoin's treasury strategy: ETH not only has appreciation potential but also can earn stable income (3%+ through staking), combining capital appreciation and cash flow. Consensys CEO Joe Lubin remarked, 'Treasury companies may push ETH's market cap to surpass BTC within a year.'

📊 Hot money flows into ETFs, with Ethereum surpassing Bitcoin

According to Farside data, since July, ETH spot ETFs have seen a net inflow of over $2 billion, with a cumulative annual total of $8.7 billion, and assets under management exceeding $15.6 billion.

More notably, on August 8, the single-day inflow of funds into ETH ETFs ($461 million) surpassed BTC ($404 million) for the first time. Among them, BlackRock bought $250 million, Fidelity $130 million, and Grayscale also increased its position by $60 million.

⚖️ Policy tailwinds: from recognition to support

On the regulatory front, Ethereum has also welcomed a series of favorable developments:

Compliance of staking income: Some U.S. states have allowed companies to disclose ETH staking income in their financial reports.

Stablecoin legislation: requires transparent reserves, on-chain verification, and interstate payments, directly reinforcing ETH's core position in stablecoin settlements.

Project Crypto Plan: The SEC and the Treasury are pushing policies to encourage DeFi and on-chain financial innovation, making Ethereum the natural biggest beneficiary.

The final step came from the Trump administration: on August 7, an executive order was signed allowing U.S. 401(k) retirement plans to invest in alternative assets such as cryptocurrencies, private equity, and real estate, unleashing nearly $9 trillion in potential long-term buying power.

✅ Summary

Ethereum has reached a new high after 1384 days, not just a price breakthrough, but a shift in narrative.

Macro easing, institutional participation, ETF hot money, and favorable policies are collectively shaping the main storyline of ETH's next cycle. The pressing question is: will the peak of this rally be $6000, $8000, or even further at $10,000?