Ethereum has made a remarkable recovery, with its value increasing by over 250% since its lows in April. This surge can be attributed to the dovish stance taken by Federal Reserve Chairman Jerome Powell, which has driven the Ethereum price rally. The market share of Bitcoin has also dropped below 60% for the first time since March, signaling a shift in the cryptocurrency market.
The native token of Ethereum, Ether (ETH), reached a new record high on Friday, surpassing $4,867 on Coinbase. This increase is largely due to Powell’s speech at the Jackson Hole Symposium, where he hinted at a possible 25 basis point increase in September. The stability of the unemployment rate and other labor market measures has led to a shift in the Federal Reserve’s policy stance, making it more likely to take a dovish approach.
Powell’s comments have signaled a more favorable environment for risk assets like Ethereum, leading to increased demand. ETH markets have also benefited from renewed inflows into US ETFs, with funds showing a capital worth $287.60 million after four days of outflows. By Friday, Ether ETFs jointly managed assets worth over $12.12 billion.
Ethereum has gained significant traction due to its increasing acceptance as a store of value. Last month, corporate Ethereum treasuries acquired ETH worth around $1.6 billion, with companies like Bitmine, Sharplink, and Bit Digital among the most active buyers. According to Data Resource Strategicethreserve.xyz, these stocks had increased to over $29.75 billion by Friday. Ray Youssef, CEO of Finance App Noones, notes that Ether is increasingly regarded as a useful and rich reserve asset rather than just a speculative token.
Some analysts predict that the ETH price could reach $13,000 in the coming months. Standard Chartered has increased its ETH price target for the end of the year to $7,500 by 2028. Hyblock analysts believe that market demand for ETH is likely to continue to exceed the available supply, driving the price up. “If you get to these high all-time levels (psychological levels), you usually see that OGS will be sold from 2012 to 2015, and if this sale/supply is not met with real demand,” they say.
The rally in ETH has also led to a decline in Bitcoin’s market dominance. Until Wednesday, Bitcoin’s proportion of the entire cryptocurrency market capitalization went under 60% for the first time in four months. This shift signals a capital rotation into altcoins, especially large-cap ones like Ether, as traders and institutions seek higher returns.
Ether Fund Flows also reflect the bullish sentiment on the ETH market. According to Coinshares’ weekly report, $552 million flowed into Ethereum investment products in the week until August 15, while Bitcoin products recorded $21 million in outflows. On a month-to-date basis, ETH fund holdings have increased by over $2.96 billion.
This article does not contain investment advice or recommendations. Every investment and trade movement carries risk, and readers should conduct their own research before making any decisions. For more information, visit https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound.
