Ethereum broke out to a new peak on Coinbase, increasing over 250% from the April low, due to the Fed's dovish stance, the return of ETF capital flows, and the decline in Bitcoin's market share below 60%.
ETH's upward momentum is bolstered by expectations of a 25 basis point rate cut in September, a reversal of net ETF capital flows, and corporate treasury accumulation, while capital rotates from Bitcoin to major altcoins.
MAIN CONTENT
ETH surpassed $4,867 on Coinbase, increasing more than 250% from the April low of $1,385.
The Fed Chairman's dovish stance supports liquidity, with ETH ETF attracting a net $287.60 million on 21/08.
Bitcoin's market share fell below 60%, with cash flow rotating towards altcoins, particularly Ether.
How did ETH achieve a new peak in the recent session?
ETH surpassed $4,867 on Coinbase, the highest level since 11/2021, after a roughly 14% increase in one day. From the April low of $1,385, ETH has recovered over 250%.
The breakout occurred simultaneously with expectations of monetary policy easing, significantly increasing risk appetite. With a positive macro backdrop and recovering investment demand through ETFs, technical momentum and cash flow support each other, helping ETH reach new peaks and widen the gap from many other altcoins.
Why does Jerome Powell's dovish stance support ETH prices?
Statements at Jackson Hole indicate the possibility of interest rate cuts, which typically means looser liquidity, often beneficial for risk assets like Ethereum.
"The stability of the unemployment rate and other labor market measures allows us to proceed cautiously when considering changes in policy stance... However, when the policy is in a restrictive zone, the fundamental outlook and shifts in risk balance may justify adjustments to the policy stance."
– Jerome Powell, Chairman of the Federal Reserve, speaking at the Jackson Hole Conference, 23/08/2024, source: Federal Reserve
The cautious yet easing message indicates that the risk of excessive tightening has diminished. With lower-than-expected capital costs, investors tend to expand exposure to growth and innovation assets, benefiting ETH due to the DeFi ecosystem, stablecoins, and gradually increasing network usage.
How is Ethereum ETF capital flow in the United States changing?
After four days of net outflows, ETH ETFs in the United States recorded a net inflow of $287.60 million on 21/08 (according to Farside Investors). As of Friday, total assets under management reached over $12.12 billion.
The reversal of ETF capital flows indicates that institutional demand is recovering, supporting spot prices through creation–redemption mechanisms. Persistent cash flow helps reduce volatility, while also serving as a positive signal of market confidence in ETH as a long-term asset.
How are corporate treasuries accumulating ETH?
In the past month, Ethereum treasury companies have purchased approximately $1.6 billion in ETH; as of Friday, total holdings exceeded $29.75 billion (StrategicETHReserve.xyz). Active entities include BitMine, SharpLink, Bit Digital, BTCS, and GameSquare.
The increase in corporate allocations to ETH indicates a changing perspective: from speculative assets to utility-rich reserve assets. According to Ray Youssef, CEO of NoOnes, Ether is increasingly seen as a functional reserve asset, tied to the growing demand for network use and application ecosystem.
What does ETH's increase of over 250% since April reflect?
ETH's long-term upward trend reflects the convergence of macro factors supporting risk, ETF capital flows, and corporate accumulation, along with expectations of upgrades and expanded applications in the Ethereum ecosystem.
The resilience of both active and passive cash flow helps absorb profit-taking supply at psychological peak zones. When actual demand continues to exceed supply, the upward trend is maintained even in the face of short-term corrections.
What do financial institutions forecast for ETH prices?
Standard Chartered raised its year-end target for ETH to $7,500 from $4,000, and $25,000 by 2028. Some analysts also believe that ETH could aim for $13,000 in the coming months.
These targets are based on the argument about institutional capital flow, the ETF effect, and Ethereum's central role in DeFi and stablecoins. Nevertheless, price forecasts heavily depend on the macro cycle and market sentiment, so investors need to manage risks appropriately.
What is notable about supply and demand in the ETH market according to Hyblock?
According to Hyblock analysts, market demand for ETH is likely to continue exceeding supply, even with selling pressure from veteran investors at historical peak zones.
The analysis team notes that capital into ETFs, accumulation of corporate treasuries, and favorable drivers for Ether, DeFi, and stablecoins have created a rare supportive backdrop. As actual demand absorbs profit-taking supply, the risk of forming short-term peaks will decrease.
Why is Bitcoin's market share falling below 60% important?
Bitcoin's market share fell below 60% for the first time since March, lower than the yearly peak of 66%, indicating that capital is rotating towards major altcoins like Ether.
History shows that capital rotation periods often enhance the performance of major assets outside of Bitcoin, especially when there are unique stories like ETFs, corporate accumulation, and expectations of network upgrades. This creates conditions for ETH to lead the altcoin group in the short term.
How is the cash flow into the digital asset fund: ETH outperforming BTC?
For the week ending 15/08, concentrated Ethereum investment products attracted $2.86 billion, far exceeding the $552 million into Bitcoin (CoinShares). Since the beginning of the month, the ETH fund has increased by $2.96 billion, while the BTC product recorded a net outflow of $21 million.
The capital flow difference reflects positive expectations for ETH. As passive cash flow shifts direction, the market structure may change, allowing ETH to receive a revaluation compared to BTC, at least in the current rotation phase.
Ethereum Bitcoin Indicator Source Weekly capital flow (ending 15/08) +$2.86 billion +$552 million CoinShares Capital flow since the beginning of the month +$2.96 billion -$21 million CoinShares
What notable data and reference sources should be monitored?
ETF capital flow: Farside Investors recorded a net inflow of $287.60 million on 21/08, with AUM exceeding $12.12 billion. Fund capital flow: CoinShares shows a significant difference leaning towards ETH. Corporate accumulation: StrategicETHReserve.xyz reports total holdings over $29.75 billion.
Monitoring these sources helps assess the health of institutional cash flow – a key factor determining the sustainability of ETH price trends in the current cycle.
What are the main risks that could slow ETH's upward trend?
Risks arise from sudden changes in interest rate expectations, ETF capital flow volatility, and profit-taking at psychological peak zones.
Moreover, if Bitcoin's market share recovers strongly, capital may rotate back, weakening the current positive correlation with ETH. Investors should be cautious with leverage, allocate according to scenarios, and update fund and ETF data weekly.
Data sources and original links
ETH ETF and AUM: Farside Investors. Fund capital flow: CoinShares. Corporate treasury accumulation: StrategicETHReserve.xyz. Fed Chairman's statements: Federal Reserve.
Frequently Asked Questions
What has driven ETH's increase of over 250% since April?
The combination of a dovish stance from the Fed, a return of ETF capital flows, accumulation of corporate treasuries, and capital rotation out of Bitcoin is the main driving force. Source: Farside Investors, CoinShares, StrategicETHReserve.xyz.
What role does the Ethereum ETF play in the upward trend?
ETFs provide a transparent channel for institutional capital flow. On 21/08, the ETH ETF attracted a net $287.60 million, with AUM exceeding $12.12 billion (Farside Investors), supporting immediate demand.
Is Bitcoin dominance below 60% a sign of altseason?
The declining dominance often coincides with capital rotation towards altcoins, especially major assets like ETH. This is a favorable signal but does not guarantee longevity.
What does Standard Chartered forecast for ETH prices?
The bank raised its year-end target to $7,500 from $4,000 and $25,000 by 2028. This is a forecast, not a commitment.
How does fund flow: ETH compare to BTC recently?
For the week ending 15/08, ETH investment products attracted $2.86 billion, surpassing BTC's $552 million. Since the beginning of the month, ETH has increased by $2.96 billion, while BTC recorded a net outflow of $21 million (CoinShares).
Source: https://tintucbitcoin.com/eth-lap-dinh-fed-on-hoa-etf/
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