Souvenir tokens representing cryptocurrency Bitcoin and the Ethereum
Credit: Reuters Photo
Bengaluru: The second-largest cryptocurrency, Ethereum, on Monday crossed an all-time high of over $4,900, driven by multiple factors, including US Federal Reserve Chairman Jerome Powell's indication of a possible interest rate cut next month. On Monday evening, the cryptocurrency was trading at over $4,615. This is the first time the cryptocurrency has touched the $4,900 mark after four years. Its previous record was $4,878 in November 2021.
Over the past 48 hours, about 200,000 ETH (Ethereum) have been withdrawn from exchanges, suggesting a potential supply squeeze in the near term, said Edul Patel, CEO of Mudrex, a crypto exchange. He added that ETH’s next leg of rally could breach the $5000 mark with strong support at $4,400.
On Monday evening, Bitcoin was trading at above $1,11,520, and experts said the potential rate cut discussion has lifted risk appetite.
Himanshu Maradiya, Founder and Chairman, CIFDAQ, a cryptocurrency exchange, said Bitcoin held firm at key support levels, leaving traders closely watching for signs of either a breakout or a potential pullback.
"At the macro level, market sentiment is being shaped by heightened discussion around the US Federal Reserve’s upcoming September meeting," Maradiya added.
Raj Karkara, COO, ZebPay said this achievement reflects growing institutional confidence, the maturation of Layer 2 scaling solutions, and the efficiency gains delivered by the Merge, subsequent upgrades, and the upcoming Fusaka upgrade, which will enhance data availability and scalability through innovations like PeerDAS.
"As the ecosystem continues to expand with innovations such as rollups and on-chain liquidity protocols, we are witnessing Ethereum cement its position as the foundational layer for Web3. The price action underscores the market’s recognition of its utility-driven value proposition and long-term scalability," he added.