In recent weeks, we have attended a real fireworks. After months spent taking dust in the shadow of Big Brother Bitcoin, Ethereum (ETH) returned to the front of the stage, bordering on his former absolute record (ATH) of 2021 and flying towards new heights. The Crypto market as a whole has even exceeded $ 4,000 billion in capitalization, a new historic record.
This movement may not be so trivial as that, especially in the middle of August where the financial markets are supposed to take a nap, a mojito in hand. But it must be admitted, it has happened a lot of things lately and the signals are clear: the dominance of Bitcoin is crumbling, the Altcoins have found vigor, and for the first time in months, it was Ether that led dance.
An alignment of the planets that shakes the market
Three factors explain this return in force of Ethereum, a cosmic alignment that we had not seen for a long time:
- The interest of institutions : Large companies have ended up waking up and realized that it is not just Bitcoin in life. Actors the size of Bitminea historic bitcoin minor, added $ 1.7 billion ETH to its balance sheet in a single week, with a stated objective of holding 5 % of the supply in circulation by next year. And they are not the only ones in this frantic race for accumulation! We can also cite SharpLink Gaming or Bit Digital. For their part, ETFE Ethereum have attracted billions of dollars in capital, with net entries that amount to billions just in August. Last week, they even attracted eight times more capital than their Bitcoin counterparts. And for the little joke, these ETFs absorbed more ether in a single month than what was emitted on the network in almost 3 years.
- A more favorable regulatory framework : Summer saw the lines radically move on the side of Uncle Sam. The regulator, who was the sworn enemy of the crypto ecosystem, changed his noise and is now pro-Crypto. We had the vote of GENIUS Act in July, and the SEC launched his Project Crypto. Imagine the impact if even a fraction of the 8,700 billion dollars of American retirement plans (401(k)) came to expose themselves to cryptos.
- Technical signals : The price of the ETH has crossed the $ 4,000 mark, a level that has been used as resistance since 2021, and which has now become a key support. This movement, coupled with an interest of the general public visible in Google research, reinforces the dynamics of a potential “Altseason”.
Can this dynamic remain lasting?
This is the question that everyone is asking. Is this Run of Ethereum the beginning of a growth phase which could propel it far beyond its former ATH, even reach 25,000 dollars as some? Besides, for his part, BlackRock pushes for an ETF with sting, which could make the ETH even more attractive.
To understand everything about this phenomenon, behind the scenes of this movement and the challenges that remain to be overcome, watch the full video below.