TLDR
- Ethereum reached a new all-time high above $4,870 after Fed Chair Jerome Powell’s dovish speech at Jackson Hole
- ETH has gained over 250% since its April lows at $1,385
- Institutional inflows resumed with $287.60 million flowing into Ether ETFs on August 21
- Bitcoin’s market dominance dropped below 60% for the first time since March, signaling potential altcoin season
- Corporate treasury adoption has increased with companies acquiring $1.6 billion worth of ETH in the past month
Ethereum’s native token Ether reached a new record high on Friday, crossing above $4,867 on Coinbase. This marked the first time ETH has traded at these levels since November 2021.
The price surge came directly after Federal Reserve Chair Jerome Powell delivered his speech at the Jackson Hole symposium. Powell’s comments raised expectations for a 25 basis point interest rate cut in September.
ETH jumped approximately 14% on Friday alone. When compared to its April low of $1,385, Ether has now gained over 250%.
Powell’s dovish stance provided the catalyst for the rally. He stated that the stability of unemployment and other labor market measures allows the Fed to proceed carefully with policy changes.
The Fed Chair added that with policy in restrictive territory, the baseline outlook may warrant adjusting their policy stance. This signals looser liquidity conditions ahead, which typically benefits risk assets like Ethereum.
Beyond Powell’s speech, several factors contributed to ETH’s performance. $5 billion in ETH and Bitcoin options were set to expire during or before the speech.
The surge also triggered massive liquidations of short positions. Approximately $245 million worth of ETH short positions were liquidated as Ethereum reached its all-time high.
Institutional Adoption Drives Demand
Ether markets received further support from renewed inflows into US-based ETFs. On August 21, these funds attracted $287.60 million in capital after experiencing four consecutive days of outflows.
As of Friday, Ether ETFs collectively manage over $12.12 billion in assets. The renewed inflows demonstrate institutional confidence in Ethereum’s long-term prospects.
Corporate treasury adoption has also accelerated. Over the past month, corporate Ethereum treasury firms acquired roughly $1.6 billion worth of ETH.
BitMine, SharpLink, Bit Digital, BTCS, and GameSquare were among the most active buyers. These corporate holdings have grown to over $29.75 billion according to StrategicETHReserve.xyz data.
Ray Youssef, CEO of finance app NoOnes, notes that Ether is increasingly viewed as a utility-rich reserve asset rather than purely speculative.
Ethereum Price Prediction
Bitcoin’s market dominance has declined as Ethereum gains strength. Bitcoin’s share of total cryptocurrency market capitalization dropped below 60% for the first time in four months.
At its yearly high, Bitcoin controlled 66% of the crypto market share. This shift indicates capital rotation into altcoins, particularly large-cap tokens like Ether.
Ethereum-focused investment products attracted $2.86 billion in the week ending August 15. This exceeded Bitcoin’s $552 million in inflows during the same period according to CoinShares data.
On a month-to-date basis, ETH fund holdings increased by more than $2.96 billion. Bitcoin products recorded $21 million in outflows during the same timeframe.
Analysts at Hyblock believe market demand for ETH will continue outpacing available supply. They noted that real demand exists to absorb any selling pressure from early investors.
Standard Chartered has raised its year-end ETH price target to $7,500 from $4,000. The bank projects a price of $25,000 by 2028.
Some analysts suggest ETH could reach $13,000 in the coming months. The combination of ETF inflows, corporate adoption, and DeFi growth creates favorable conditions for continued price appreciation.
As of Friday’s close, Ethereum traded at $4,724, maintaining its position above the previous all-time high set in November 2021.
