Ethereum's native asset has broken the $4,000 mark for the first time in eight months, briefly reaching a high of $4,055 during intraday trading. This key psychological milestone leaves the cryptocurrency just about $900 away from its all-time high of $4,867 set in November 2021.
Institutions and ETFs drive the price surge
ETH price has soared significantly, rising over 44.5% in the past month. In the past week, ETH price rose 7.9%, and increased by 2.6% in the last 24 hours. Since April 21, the ETH to Bitcoin price has risen by about 90%.
The main factors driving the recent rebound seem to be twofold: a surge in institutional accumulation and strong inflows into spot Ethereum ETFs.
An increasing number of companies are actively acquiring billions of dollars worth of ETH. BitMine leads with holdings of over 833,000 ETH ($3.3 billion), followed by SharpLink with nearly 522,000 ETH ($2.1 billion). Standard Chartered's Geoffrey Kendrick stated that these companies are 'just getting started' and could ultimately hold as much as 10% of ETH.
The net inflow of US spot Ethereum ETFs has surged significantly, even surpassing Bitcoin ETFs in recent weeks. Just last month, these products attracted nearly $5 billion in funding. Since trading began in July 2024, they have contributed significantly to a total net inflow of $9.4 billion.
Market observer Cas Abbé highlighted a 'whale' transaction in which an investor purchased 10.4K ETH worth $40.5 million through OTC trading.
Prior to this, Fundamental Global Inc. took another significant step by submitting a $5 billion shelf offering to acquire more ETH, further indicating strong interest from institutional investors.
ETH's performance continues to outperform BTC. Just today, a whale purchased 10,400 ETH worth $40.5 million through an OTC trading platform. Yesterday, Fundamental Global Inc submitted a $5 billion shelf offering to acquire more ETH. It seems that the $4,000 resistance level for ETH may not last long.
As altcoin season approaches, Bitcoin's dominance declines
The rise of ETH coincides with a significant decline in Bitcoin's dominance, with Bitcoin's share of the entire cryptocurrency market dropping by about 59%. This shift indicates that capital is moving from Bitcoin to altcoins, including Ethereum.
Renowned trader and analyst Rekt Capital pointed out on X that 'Ethereum's dominance has reached about 50-60% of its macro upward trend,' comparing it to the last bull market in 2021.
He predicts that Bitcoin's dominance may temporarily rebound. However, he also stated that it will ultimately 'shift into a long-term technical downtrend.' This analysis suggests that a broader 'altcoin season' may emerge, during which altcoins will see significant rises relative to Bitcoin.
