Ethereum won a new all-time high price on Friday, a regulatory environment that is increasingly favorable for protocols, breaking almost four-year records following recent profits promoted by surges in the ETH Treasury Department due to growing interest from traditional financial companies.
Coingecko's data shows that the second-largest cryptocurrency by market capitalization rose 15% in the past 24 hours to surpass the $4,878 record at $4,879.
ETH has more than doubled its price to surpass Bitcoin as investors have flooded the funds traded on exchanges for the past two months. After approaching a new record on August 14th, ETH prices fell alongside the rest of the market, falling below $4,100 earlier this week.
However, crypto prices surged widely on Friday, following comments from Federal Reserve Chairman Jerome Powell. Ethereum jumped nearly 8% an hour after comment and continued on.
“It's the ETH moment that ultimately shines. It records the influx of ETH ETFs, allowing a massive digital assets Treasury launch, a broader ecosystem success, and a Trump executive order that allows 401(k) digital assets. Decryption. “Jerome Powell's Devish speech today was the final push ETH that required rate reductions.”
Huang added: “ETH's trench sentiment is also strong. Layer-2 like the base continues to grow, and ETH is the most resistant to the second Solana with a factor of 9 times above 9 times.
The recent Ethereum boom has been driven in part by increased demand for ETFs. Last week, US Spot Ethereum ETFs attracted more than $1 billion inflows in a day for the first time since they began trading in July 2024. The Ethereum Funds are making profits on Bitcoin ETFs, but on the contrary, they also set off faster on down days.
That profit grew with the rise of companies that have made Ethereum a major mission. In recent weeks, Bitcoin miner Bitmine Immersion has increased its holdings to more than $7 billion, while Sharplink Gaming, which pivots from online marketing, has accumulated over $3.5 billion in coins.
These companies are following in the footsteps of Bitcoin Finance firms' strategies (previously micro-strategic strategies) to buy the largest cryptocurrency by market capitalization in 2020 and pump stock. The move has affected dozens of followers who have begun to expand to other assets such as Ethereum, Solana and BNB.
“There are a lot of tailwinds behind ETH right now,” said Strahinja Savic, head of data and analytics at FRNT Financial, a crypto-centric financial services and advisory firm. “The record inflow of ETH ETFs and aggressive purchases from the Ministry of Finance provide concrete demand.”
“Added to this, Ethereum is at the heart of several key themes that have attracted the attention of traditional financial institutions,” he continued. “These include the tokenization of traditional assets and stubcoin. These are key economic themes, and Ethereum has emerged as a strong candidate to host this new influx of capital and interest.”
Ethereum was again supported this month as Ethereum users have long sought from securities regulators when the SEC clarified its staking guidance.
Although former President Joe Biden's more restrictive policies resisted allowing this feature, under President Donald Trump, regulators said liquid staking services can pay staking fees to customers without registering with agents.
The passing of last month's genius act also boosted Ethereum's prospects. This law provides a US regulatory framework for issuing stability. The developers of these projects use the Ethereum blockchain overwhelmingly in their projects. Most stables are fixed at US dollar value.
The odds that Ethereum has risen above $5,000 this year have jumped in countless markets over the past day. The forecast market currently shows a roughly 85% chance that a token will reach its threshold in 2025.
(Disclosure: Myriad is a forecast market and engagement platform developed by Dastan, the editorially independent decryption parent.)
In a memo last week, UK Bank Standard Chartered raised its Ethereum price target to $25,000 by 2028. This is a major shift from the March forecast, which predicted the world's second largest structural decline in cryptography.
“We're raising price forecasts as the background in ETH has dramatically improved over the last few months,” writes Geoff Kendrick, global director of digital asset research at the bank.
Editor's Note: This story was updated after publication and contains another comment.
