ETH Climbs to Fresh Record as Fed Turns Dovish and Ether ETF Flows Rebound

Ether surged to a new all-time high this week, topping prior 2021 peaks as traders reacted to a softer Federal Reserve tone and renewed institutional demand. Intraday prints showed Ether trading above the previous record level as momentum accelerated across U.S. spot Ether exchange-traded funds.

The rally intensified after Federal Reserve Chair Jerome Powell signaled a more dovish stance during his Jackson Hole remarks, increasing market expectations for a September interest-rate cut. That shift in policy expectations boosted appetite for risk assets, including cryptocurrencies, and helped lift Ether sharply higher.

Spot Ether ETFs showed a clear return of investor demand on Aug. 21, 2025, when the funds recorded an inflow after several days of outflows; industry trackers reported the rebound and said total ETF assets and recent multi-day inflows have pushed aggregate Ether ETP holdings back into double-digit billions of dollars. Market data providers and industry reports highlighted that BlackRock’s iShares product was a major contributor to the inflow.

Beyond ETFs, corporate treasuries and publicly listed firms have been significant buyers of Ether in recent months. A wave of corporate treasury strategies — led by names that have publicly raised capital to buy ETH — has materially increased institutional holdings, with several firms disclosing large accumulations and weeks of rapid purchases. These corporate acquisitions have been cited as an important demand factor supporting the price advance.

The Ether rally has coincided with a decline in Bitcoin’s share of total crypto market capitalization, a sign that capital is rotating into altcoins and large-cap tokens like ETH. Recent market-data snapshots show Bitcoin dominance slipping below the 60% threshold, a move that market participants often interpret as favorable for broad altcoin performance. citeturn4search1turn1search2

Analysts and banks have revised forward-looking ETH scenarios upward in response to the confluence of looser Fed expectations, ETF inflows, and growing corporate demand, although price targets vary widely and some observers warn that profit-taking from early long-term holders could create volatility at extreme highs.

Note: This rewritten summary is for informational purposes only and is not investment advice. Cryptocurrency markets are volatile; readers should perform their own research before making financial decisions.