With the recent price surge for Ethereum, fueled by comments from Fed Chair Jerome Powell about potential rate cuts, market activity in cryptocurrencies has increased.
ETH Price Surge on Fed Comments
The price of Ethereum hit $4,953 over the weekend, marking its highest level since 2021. However, by press time, it had dropped to $4,460. Nevertheless, ETH is up 7.35% over the past week and 26.94% over the past month. Powell's remarks at the annual Jackson Hole meeting increased September rate cut expectations from 75% to 87%.
Institutional Inflows Support ETH Price
Recent data shows that over 10.6 million ETH, valued at over $50 billion, has been locked across corporate treasuries and institutional vehicles. Specifically, Bitmine Immersion Tech, led by Tom Lee, added $45 million in ETH. Additionally, all nine US-listed Ethereum ETFs recorded combined net additions of $341 million, marking significant interest from institutional investors.
Broader Adoption Keeps Momentum Intact
Analysts noted that Ethereum's performance increasingly mirrors traditional financial markets. Lower interest rates typically benefit digital assets, which is reflected positively in the markets. Recent favorable rulings on stablecoins and increasing adoption by traditional finance are reinforcing long-term demand for ETH.
Despite the recent price drop, factors such as expectations of monetary easing and the rise in institutional investments remain key in shaping Ethereum's future dynamics. The drop is viewed as a short-term phenomenon, and many experts predict that ETH will approach the $5,000 mark again.
