Ethereum Hits New All-Time High Amid Fed Dovish Tilt and Institutional Frenzy

On Friday, August 22, 2025, Ethereum (ETH)—the second-largest cryptocurrency by market value—surged to a new all-time high, eclipsing its prior peak from November 2021. This milestone was spurred largely by dovish comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Powell’s hint that a September interest rate cut could be on the horizon reignited investor enthusiasm for risk assets, including ETH.

Price Action and Performance

ETH closed at $4,845, with an intraday peak of approximately $4,882, surpassing its previous record from 2021.

Other outlets report figures between $4,866–$4,885, depending on the exchange.

Year-to-date, ETH is up ~45%, outstripping Bitcoin’s ~25% gain.

Since its April low (~$1,385), ETH has rebounded more than 250%.

Drivers Behind the Rally

1. Fed Signals and Macro Momentum
Powell’s dovish stance spurred expectations of lower borrowing costs, unleashing fresh liquidity into risk assets like ETH.

2. Record ETF Inflows & Institutional Treasury Accumulation
Spot Ethereum ETFs drew billions of dollars in inflows, with August alone seeing up to $2.79 billion, fueling buying pressure.
Meanwhile, large firms such as BitMine, SharpLink, Bit Digital, and GameSquare have been stockpiling ETH on the balance sheet, adding to institutional demand.

3. Regulatory Tailwinds: the Genius Act & ETF Approvals
The recent U.S. passage of the Genius Act—alongside the approval of spot ETH ETFs—has reduced regulatory uncertainty and opened the door for traditional financial institutions to engage more deeply with the Ethereum ecosystem.

4. Market Structure: Derivatives & On-chain Signals
Ethereum’s derivatives market is booming: open interest soared to new highs (over 8 million ETH, ~$3.4 billion in value), signaling institutional conviction and aggressive exposure.
On-chain data also shows strong withdrawal activity from exchanges, indicating accumulation rather than distribution.#Institutions Hold 10M+ ETH# #ETH hits $4800# #Crypto Market Rebound#