Ethereum approaches $4900 amid $12.7B ETF inflows and Fed policy contributing to $10K rally expectations
Ethereum is on the brink of reaching $4,900 as a result of $12.7 billion ETF inflows and a dovish Fed policy that has sparked renewed bullish momentum in the global crypto markets. After briefly hitting $4,885 on August 22, the second-largest cryptocurrency has seen a surge in investor confidence following Jerome Powell’s speech at Jackson Hole.
Various analysts have differing opinions regarding the short-term outlook for Ethereum. While some believe that the current rally is supported by institutional demand and favorable macro conditions, others caution against hasty investments due to bearish divergence in the Relative Strength Index (RSI) and on-balance volume (OBV). In light of this, it is important for investors to remain cautious and not make impulsive decisions based on the current market trends.
Institutional inflows into Ethereum ETFs have been a major driving force behind the recent rally. Data indicates that institutional investors have poured $12.7 billion into Ethereum ETFs in 2025, demonstrating a growing confidence in the digital asset among Wall Street players. BlackRock, in particular, has been making significant investments in Ethereum, with a recent acquisition of $233 million worth of ETH. The involvement of institutional players in the crypto market has historically led to price increases of up to 30% during bullish cycles, largely due to increased liquidity and confidence.
Federal Reserve policies also play a significant role in influencing crypto prices. Powell’s hints at potential rate cuts have lowered borrowing costs and fostered a risk-on sentiment, directly benefiting Ethereum and other digital assets. Additionally, Ethereum’s role as a settlement layer for stablecoins and decentralized finance (DeFi) has solidified its position in the market. Treasury firms and whales are actively accumulating ETH, with some experts drawing parallels between Ethereum’s current adoption curve and the U.S. dollar’s decoupling from gold in 1971.
The broader Ethereum ecosystem is also experiencing growth, with various projects tied to Ethereum’s infrastructure seeing notable gains. Layer 2 solutions like Arbitrum and Optimism are helping reduce Ethereum gas fees, attracting more users and enhancing scalability. The increasing utility of Ethereum is reflected in rising Layer 2 transaction volumes, suggesting that the digital asset’s growth is not solely speculative but also backed by real-world applications.
As Ethereum approaches its all-time high, traders are speculating on its future trajectory. While some anticipate a healthy correction before further gains, others see the $10,000 level as a realistic target. With support from institutional flows, favorable Fed policies, and growing network demand, Ethereum’s path to $10,000 seems increasingly feasible. Analysts are eyeing resistance levels at $5,200-$5,400 in the near term, with the potential for Ethereum to reach $10,000 if current trends persist.
