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Ethereum Surges to New All-Time High Amid Likely September Rate Cut
The token rose to a fresh record on Coinbase on Friday.
Aug 22, 2025, 9:16 p.m.
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What to know:
- Ethereum rose nearly 15% in 24 hours, reaching a record $4,866 after Powell suggested rate cuts could arrive in September.
- The rally in ether outpaced bitcoin and other major tokens, fueled by both macro optimism and growing institutional accumulation.
- Ether is now up 45% year-to-date, as investors increasingly view the Ethereum network as Wall Street’s likely blockchain of choice.
Ethereum (ETH) hit a record price of $4,885 on Coinbase on Friday after a speech by Federal Reserve Chair Jerome Powell suggesting interest rate cuts left traders relieved going into the weekend.
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The token rose nearly 15% over the past 24 hours as part of a broader rally in financial markets.
Nevertheless, ether’s rally stood out among other tokens. Bitcoin was also up, but only by about 4%. The CoinDesk 20 Index, which tracks the broader crypto market, rose 9% over the same period.
Powell on Friday gave hints that the Fed will indeed cut interest rates in September, as initially anticipated by traders. Hope, however, faded over the last few days, causing a significant reaction in global markets during Friday trading hours.
Ether has not only profited from macroeconomic circumstances this year, but even more so from renewed institutional interest in the network behind the token.
Several companies have started accumulating ether as part of their treasury strategy, including ETHZilla that is backed by billionaire investor Peter Thiel. Some believe that Ethereum will eventually be Wall Street’s favorite blockchain to build on, fueling demand for its native token.
As a result, ether has outperformed bitcoin this year, up about 45% since the start of 2025 while the largest cryptocurrency is up 25%. Some other ether-related tokens, such as Lido (LDO) and Ethena (ENA), also benefited from ETH's swift rally.
Di più per voi
Small investors are buying bitcoin. For a rally to succeed, the whales need to join in.
Small wallets have increased their BTC holdings by 2.5% since October's all-time high while large holders trimmed 0.8%, Santiment data shows.
Cosa sapere:
- Bitcoin wallets holding less than 0.1 BTC have increased their share of supply to the highest since mid-2024 even as the price holds around the mid-$60,000s.
- Larger holders with 10 to 10,000 bitcoins — the whales and sharks that typically drive major moves — have reduced their positions since the October peak.
- The divergence supports choppy, fragile price action because retail demand alone cannot sustain rallies when big wallets are distributing into every recovery.
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