Ethereum's price hit a historic high, breaking through $4900 intraday, officially entering a new stage of price discovery. This round of market activity is not merely speculative hype but is the result of a combination of macro environment, capital inflows, and technical fundamentals. Federal Reserve Chairman Powell's dovish remarks at the Jackson Hole meeting clearly released expectations for interest rate cuts, quickly boosting global risk appetite and acting as a catalyst for the market. Meanwhile, the successful launch of the Ethereum spot ETF has led to over $12 billion in capital inflows in just a few weeks, locking in 6 million ETH, which significantly reduces market supply.
From a fundamental perspective, the intrinsic value support of Ethereum is becoming increasingly solid. The Layer 2 ecosystem is rapidly rising, with transaction volumes exceeding that of the mainnet; the DeFi sector is experiencing a revival, with total value locked (TVL) rising above $60 billion; on the supply side, continuous deflation has occurred after the merge upgrade, further reducing the market's tradable ETH. These combined factors are gradually allowing Ethereum to break free from merely being a risk asset and become a core infrastructure of the new financial system.
On a psychological level, this breakthrough historical high point means that all buyers at the peak of the 2021 bull market have been released from their positions, and there is no significant selling pressure above the price. This will attract more institutional and retail funds into the market, and FOMO (fear of missing out) sentiment is expected to drive the next round of price increases. However, despite the bullish market sentiment, investors still need to respond rationally to the potential risk of a pullback. The reversal of Federal Reserve policy, slowing ETF fund inflows, and leverage issues are all potential concerns that should continue to be monitored to avoid blindly chasing highs.
