Ether Price Surges Past 4,600 Dollars as ETF Inflows Hit New Record
A wave of institutional investment, combined with a favorable macroeconomic outlook, propelled the price of Ether significantly higher. The digital asset broke through the 4,600 dollar mark, registering a notable daily gain. This upward movement was primarily fueled by two powerful factors converging at once: unprecedented inflows into newly approved spot Ether exchange-traded funds and dovish commentary from the Federal Reserve.
The demand for exposure to Ether through regulated, traditional market products has reached a new peak. The collective holdings of these spot Ether ETFs have swelled to a record 6.4 million ETH. This massive accumulation by the funds represents a substantial withdrawal of coins from the readily available circulating supply. As these ETFs purchase physical Ether to back their shares, they effectively lock those coins away in custody, creating a tangible supply squeeze on the open market. This constant buying pressure from the funds provides a strong and sustained foundational support for the price, insulating it from larger sell-offs and creating a bullish supply shock scenario.
Adding immediate fuel to this fire was the highly anticipated speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium. Market participants interpreted his remarks as leaning dovish, suggesting that the central bank may be closer to cutting interest rates than previously expected. Such a policy shift is generally viewed as positive for risk-on assets like cryptocurrencies. Lower interest rates make fixed-income investments less attractive by comparison, prompting investors to seek higher returns in alternative markets. Powell’s comments triggered a broad rally across equity and crypto markets, with Ether capitalizing on this wave of renewed investor optimism.
The combination of these two forces created a powerful bullish environment. The structural supply drain from ETF inflows established a strong price floor and a compelling long-term narrative. Simultaneously, the positive shift in macroeconomic sentiment provided the short-term catalyst needed for a sharp price appreciation. This dual-thrust effect allowed Ether to outperform many other assets, testing prices not seen in many weeks.
Analysts are closely watching the flow data from the ETFs, as continued strong inflows could indicate that this rally has further room to run. The fundamental case for Ether is being strengthened daily as more institutional capital enters the space through these regulated vehicles. While cryptocurrency markets remain inherently volatile, the current landscape, defined by institutional accumulation and a supportive macro backdrop, presents a notably optimistic outlook for Ether in the near term. The market now watches to see if this momentum can challenge the asset’s previous all-time high.
