Ethereum achieved a new milestone as the digital asset surged to an all-time high, fueled by growing optimism over an expected interest rate cut by the U.S. Federal Reserve. The price of Ethereum (ETH) climbed to $4,885 on Coinbase, marking a nearly 15% jump within just 24 hours.

Macroeconomic Winds Favor Ethereum’s Momentum

Ethereum’s latest rally comes on the heels of comments from Federal Reserve Chair Jerome Powell, who implied a potential rate reduction in September. Traders, who were losing confidence in the likelihood of a rate cut earlier this week, welcomed the reassurance. This renewed optimism sparked movement across financial markets, particularly benefiting high-growth assets like cryptocurrencies.

Compared to its peers, Ethereum’s gains were particularly noteworthy. While Bitcoin also advanced during the same period, the leading cryptocurrency managed only a 4% increase. In contrast, the CoinDesk 20 Index, which tracks a broad array of major crypto assets, recorded a 9% uptick, still trailing Ethereum’s impressive run.

Institutional Appetite Fuels Growth

Beyond favorable macroeconomic signals, Ethereum’s continued ascent reflects mounting institutional interest. Corporations are increasingly including ETH in their treasuries, viewing it as both a strategic asset and a gateway to blockchain infrastructure. One notable example is ETHZilla, a cryptocurrency fund backed by billionaire investor Peter Thiel, which has recently made significant ETH purchases as part of its long-term holdings strategy.

Industry analysts believe Ethereum’s blockchain may soon become the go-to infrastructure for financial services, smart contracts, and decentralized applications in the Wall Street ecosystem. This belief is driving sustained demand for ETH, especially among institutional players who see its programmable framework as a key advantage over competitors.

Ethereum’s price chart displays a sharp rally powered by expectations of a Federal Reserve rate cut in September.

Ethereum’s 2025 Performance Leads Major Tokens

Ethereum has outshined much of the cryptocurrency market throughout 2025. Since January, ETH has appreciated roughly 45%, compared to Bitcoin’s more moderate 25% gain. This strong performance underscores Ethereum’s critical role in the evolving crypto ecosystem and continued investor confidence in its underlying technology.

Meanwhile, tokens built on Ethereum’s network like Lido (LDO) and Ethena (ENA) have also capitalized on this upward momentum. These tokens have rallied over 10% as traders rushed to scoop up assets that benefit from increased staking activity and broader Ethereum adoption.

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With macroeconomic tailwinds and deepening institutional ties, Ethereum seems poised to maintain its dominant position in the crypto landscape moving into the final quarter of 2025.