Ethereum has reached a new all-time high, climbing above $4,867 on Coinbase — its highest level since November 2021. The rise has been driven by the U.S. Federal Reserve’s softer tone on interest rates and fresh investor interest in Ethereum-based funds.
Huge Recovery Since April
ETH has made a strong comeback this year. In April, the price was as low as $1,385. Since then, it has gained more than 250%. On Friday alone, ETH climbed nearly 14% after Fed Chair Jerome Powell suggested the central bank might cut interest rates in September.
Powell said that while jobs and the economy still look steady, risks are shifting. This could lead the Fed to lower rates soon — news that typically boosts assets like Ethereum and other cryptocurrencies.
Big Inflows From Funds and Companies
Another factor behind Ethereum’s rally is the renewed flow of money into ETH-focused funds. On August 21, U.S.-based ETFs added nearly $288 million after several days of withdrawals, signaling a strong return of investor confidence.
Large companies are also adding Ethereum to their treasuries. Firms such as BitMine, SharpLink, Bit Digital, BTCS, and GameSquare have purchased about $1.6 billion worth of ETH in just one month. Together, companies now hold more than $29.7 billion in Ethereum.
Experts say ETH is no longer just a “trader’s token.” It is increasingly being recognized as a long-term asset with real-world applications.
Price Targets Go Higher
With such strong momentum, analysts and banks are raising their Ethereum price forecasts. Standard Chartered, for example, increased its year-end target from $4,000 to $7,500 and believes the price could reach $25,000 by 2028.
Some market experts even think ETH could touch $13,000 much sooner due to rising demand and limited supply. They also note that, unlike in past rallies, new buyers are easily absorbing coins sold by long-term holders. Many believe this creates the “perfect mix” for further growth.
Bitcoin Losing Market Share
Ethereum’s surge has also coincided with Bitcoin’s declining dominance. This week, Bitcoin’s share of the overall crypto market dropped below 60%, down from 66% earlier this year.
The trend suggests investors are reallocating funds from Bitcoin into other cryptocurrencies — with Ethereum being the top choice. The numbers back this up: Ethereum investment funds attracted almost $3 billion in August, while Bitcoin funds saw outflows.
With both traders and institutions showing strong interest, many believe ETH will not stop at $5,000 and could climb much higher in the months ahead.