Fed Chair Powell's dovish remarks propelled Ethereum to a historic high on Friday, breaking through the previous peak from November 2021.

On Friday, Fed Chair Powell delivered significant remarks at the Jackson Hole central bank symposium, stating that current conditions suggest rising downside risks to employment. This shift in risk balance may warrant interest rate cuts.

These comments strengthened market expectations for a September rate cut, as accommodative liquidity environments typically boost investor demand for risk assets. Katalin Tischhauser, Head of Research at Sygnum Bank, noted:

"For the crypto market, the response was swift and positive. In the current liquidity-driven bull cycle, investors quickly seized upon dovish signals, and Powell's comments provided exactly that."

Ethereum, the second-largest cryptocurrency, briefly touched approximately $4,880 during trading, surpassing its November 2021 high of $4,866.40, with daily gains exceeding 15%. Since April's low point this year, Ethereum has rebounded over 250%.

Beyond favorable macroeconomic conditions, sustained institutional capital inflows have provided solid support for Ethereum. Since approval in July 2024, U.S. spot Ethereum ETFs have accumulated assets under management exceeding $20 billion. After four consecutive days of outflows, these ETF products welcomed $287.6 million in net inflows on August 21st.

Ethereum's strong rally coincides with Bitcoin's declining dominance in the crypto market, which some market observers view as a potential signal for an incoming "altseason."

Statistics show that as of Wednesday, Bitcoin's share of total cryptocurrency market capitalization fell below 60% for the first time in four months, compared to a peak of 66% earlier this year. This shift indicates that some capital is rotating from Bitcoin to other alternative coins, particularly large-cap tokens like Ethereum, in search of higher returns.

**Strong Institutional Demand: ETF and Corporate Treasury Dual Drivers**

Institutional investor adoption of Ethereum represents one of the core drivers behind this rally.

Data shows that U.S. spot Ethereum ETFs attracted over $2.5 billion in net inflows during August, while Bitcoin funds experienced $1.3 million in outflows. Nate Geraci, President of NovaDius Wealth Management, posted on social platform X:

"Feel like spot Ethereum ETFs are severely underappreciated, simply because traditional finance investors don't understand it."

He believes Bitcoin is easier to understand due to its clear "digital gold" narrative, while Ethereum requires investors to spend more time digesting its value proposition. He stated:

"Now people are hearing that Ethereum is 'the backbone of future financial markets' and that resonates."

Meanwhile, an increasing number of companies are adopting Ethereum for their digital asset treasuries. Previously, it was noted that publicly traded companies are reshaping their relationship with Ethereum in unprecedented ways.

Data shows that as of Friday, the total value of corporate-held Ethereum has grown to over $29.75 billion. Over the past month, companies including BitMine, SharpLink, and Bit Digital have been the primary accumulating forces. Among them, BitMine is the largest corporate holder, possessing 1.15 million Ethereum tokens valued at approximately $5.5 billion at current prices.