Ethereum’s price surged past $4,300 on Saturday, reaching its highest level since late 2021, driven by a weaker U.S. dollar and increasing clarity in U.S. regulatory policies. The rally reflects growing investor confidence and a shift in capital into crypto assets, particularly Ethereum, which has outperformed Bitcoin in recent weeks [1].
The strengthening of risk appetite across asset classes has been supported by expectations of a near-term Federal Reserve rate cut, with analysts noting that a dovish U.S. monetary policy environment continues to favor alternative investments. Ethereum has benefited from this backdrop, as well as from ongoing inflows into ETF sponsorship and corporate treasury allocations, which are adding to sustained demand [2].
U.S. regulatory developments have played a key role in Ethereum’s recent performance. The Securities and Exchange Commission clarified that liquid staking services on Ethereum do not constitute securities offerings, removing a significant regulatory uncertainty. This move is seen as a catalyst for broader institutional participation in yield-generating Ethereum products and has enhanced the asset’s appeal for long-term investment [3].
Further regulatory support emerged as updated accounting guidance allows certain stablecoins to be classified as cash equivalents, and new White House directives enable crypto allocations in 401(k) retirement plans. These policy changes signal a broader softening in the regulatory approach to crypto, reducing barriers for mainstream adoption [4].
Analysts have highlighted the compounding effects of ETF inflows and structural supply reductions via corporate treasuries on Ethereum’s price momentum. Exchange outflows remain steady, with approximately 33,000 ETH being removed daily, reflecting increased staking activity and reduced sell pressure. This trend supports the view that Ethereum is being positioned more as a long-term asset rather than a speculative trade [5].
Jamie Coutts, chief crypto analyst at Real Vision, noted that Ethereum is now viewed alongside AI as a key pillar of innovation and growth in the U.S. economy. He emphasized the asset’s leadership in decentralization and tokenization metrics, as well as the ongoing unwinding of a structural short position in the market [6].
According to CoinGecko data, Ethereum traded at $4,244 as of the latest available data, up over 43% in the past month. The asset’s performance has also been reflected in its growing share of total crypto market value, as Bitcoin’s dominance has fallen from 62% to below 58% in three weeks [7].
With central banks globally maintaining dovish stances, analysts anticipate that Ethereum may continue to attract capital as part of a reflationary trade in the second half of the year. Institutional interest, coupled with favorable macroeconomic conditions, positions Ethereum for further gains if regulatory and monetary trends remain supportive [8].
Source: [1] Ethereum Price Highest Since 2021 Amid Softer Dollar and US Policy Clarity (https://decrypt.co/334414/ethereum-price-highest-since-2021-softer-dollar-us-policy-clarity)
[2] Ethereum Price Square Post (https://www.binance.com/en/square/post/28119645502122)
[3] Ethereum (ETH) Price Prediction (https://www.bitget.com/price/ethereum/price-prediction)
[4] Trump Executive Order on Pension Funds (https://decrypt.co/?modalSlug=app)
