Summary of this article
Ethereum rises sharply, trading near its all-time high again.
ETF inflows, institutional interest, and network upgrades fuel the surge.
Market more mature, long-term trend positive, short-term hurdles remain.
Ethereum is approaching a significant milestone, trading just 5 per cent below its all-time high set four years ago. The cryptocurrency has regained momentum after a four-year period which signals the renewed interest from investors and market participants in Ethereum.
Ethereum is currently trading at $4,627.31, up 7.26 per cent, with a market cap of $63.80 billion. It is also getting close to its all-time high of $4,890 from 2021, crossing the $4,600 mark and showing strong momentum in the market. Ethereum has risen approximately 28 per cent in the last seven days, according to CoinMarketCap.
Balaji Srihari, vice president at CoinSwitch, says that Ethereum’s recent rise is affecting the wider crypto market. “A strong rally in Ethereum usually boosts confidence across altcoins, and the broader Web 3.0 ecosystem, since so many projects are built on it, including decentralised finance (DeFi), non-fungible tokens (NFTs), gaming, and layer-2 solutions. It can also bring back liquidity and enthusiasm, which is great. For investors, it is both a signal and an opportunity, but only if they are ready for the swings.”
What’s Driving the Surge
Ethereum’s recent surge is being driven by key market factors, including a $524 million inflow into spot exchange-traded funds (ETFs) over six days, led by BlackRock’s ETHA.
Edul Patel, CEO and co-founder of Mudrex, highlights key reasons behind the surge in Ethereum prices.
He says: “Ethereum’s current rally is being fuelled by a combination of institutional accumulation, record-high inflows of Ethereum ETFs, bullish derivatives activity, and renewed investor confidence.”
He added that with increasing government openness to regulated crypto investment products and continued network upgrades improving Ethereum’s scalability and utility, the fundamentals are aligning for potential price discovery. Also, more companies are now adding Ethereum to their treasury than ever before.
What’s Next for Ethereum: Can the Rally Sustain?
Ethereum’s performance in the coming months will indicate if it can keep its momentum and reach new highs, or whether it will face challenges similar to 2021.
Srihari says that compared to 2021, the Ethereum market today is more mature and stable.
“Back in 2021, the Ethereum rally was largely driven by the NFT boom, DeFi summer, and speculative interest, which often led to network congestion and high gas fees. Today, the market is more mature, with a focus on scalability, energy efficiency, institutional participation, and long-term adoption, making it fundamentally stronger and better positioned for sustainable growth,” he says.
He, however, adds that before buying Ethereum or any crypto, investors should do their own research, understand the technology, and invest only what they can hold for the long term.
Edul Patel also shared his views on what could shape Ethereum’s next moves. He says: “While Ethereum has surged recently, reaching $4,600 for the first time since 2021, the next $4,750 resistance is a key short-term hurdle. A decisive break above it could accelerate the path toward new highs. Although short-term traders are active, the broader trend looks positive. As long as macroeconomic conditions remain favourable and adoption continues to grow, Ethereum’s trajectory appears structurally bullish beyond just the coming weeks.”
