Ethereum stole the spotlight yesterday, soaring to a record all-time high. The surge follows Fed Chair Jerome Powell’s hint at a potential rate cut next month, a move that was widely anticipated by markets and investors.
Let’s take a closer look at what drove this rally and how the experts reacted.
Peter Brandt Reacts To ETH’s Record High
Ethereum soared over 15% in a single day, hitting a new all-time high above $4,878, surpassing its previous record from November 2021. Bitcoin also surged following Powell’s speech, climbing past $117K before settling around $115K.
Legendary Trader Peter Brandt remarked on Ethereum’s record-breaking milestone. After seeing a breakout chart shared by an X user, Brandt summed it up in one word: “Powerful.”
While he had admitted that he rarely speaks positively about ETH, he had pointed out that a congestion pattern could spark a major “moon shot” for ETH in May.
Coinbase CEO Brian Armstrong also celebrated the milestone, congratulating the community on Ethereum’s historic move. Juan Leon, Senior Investment Strategist at Bitwise, notes that as ETH hits a new ATH, it also remains the fastest major asset to reach a $500B market value, a record set in 2021.
ETH Demand Surges from ETFs and Whales
Ethereum’s surge is supported by strong inflows. After a 4-day outflow streak, ETH ETFs saw a sharp rebound, recording more than $600 million in inflows over the past 2 days.
Whales are also increasing their holdings as addresses holding 10,000+ ETH have jumped over 200, since the start of July. This shows strong accumulation at the top.
Can Ethereum Surpass Bitcoin?
Corporate adoption is also booming, as treasury holdings now approach $20 billion. Analysts say that demand for ETH is likely to continue outpacing available supply.
Fundstrat’s Tom Lee predicts a “very high probability” that Ethereum could overtake Bitcoin in market cap. He points to ETH’s growing adoption by Wall Street, its smart contracts, and the DeFi ecosystem as key drivers behind rising institutional demand.
Standard Chartered has also raised its year-end ETH price target to $7,500 and sees potential for $25,000 by 2028.
Is a Short Squeeze Ahead?
Despite the rally, ETH CME net shorts remain at record highs. Analyst Cas Abbé warns that if ETH climbs above $5K, it could trigger one of the biggest short squeezes ever.
Meanwhile, Bitcoin dominance has fallen below 60% for the first time in four months. Expert Benjamin Cowen expects a big rotation back into Bitcoin after Ethereum’s all-time high. This shift will likely start with a BTC correction in September and continue through a rally in October.
With ETF inflows returning, whales buying aggressively, and institutional adoption rising, ETH is building momentum and could soon challenge Bitcoin.
