Ether Sets New Record High as It Overtakes Bitcoin in Crypto Market Leadership
Ethereum reached a new record high over the weekend, surpassing its previous peak since 2021 on Friday. The price peaked at $4,954.81 in the afternoon on Sunday, although it was trading slightly lower by less than 1% at $4,776.46 as of this report.
Meanwhile, Bitcoin witnessed a reversal of its Friday rally gains, dipping to $110,779.01 – its lowest level since July 10. Current trading saw Bitcoin falling nearly 2% to around $112,000. The digital currency had hit its latest record of $124,496 on August 13.
The surge in cryptocurrencies on Friday was fueled by hints from Federal Reserve Chair Jerome Powell regarding potential interest rate cuts and a shift back to risk-on mode among investors. Ether experienced a 15% increase, while Bitcoin saw a 4% gain.
For several weeks, Ethereum has been leading the crypto market due to favorable regulatory conditions, increased interest in stablecoins, and significant purchases by a new group of corporate entities accumulating Ether. On Saturday, Bitmine Immersion Technologies, an ether treasury company led by Wall Street bull Tom Lee, purchased $45 million worth of Ethereum, according to crypto data provider Arkham.
This shift in leadership has contributed to the sustained growth of ETH, which has managed to maintain the $4,000 level throughout this month after several failed attempts to break through this resistance since 2021.
“The buyers are now more substantial than the sellers,” commented Ben Kurland, CEO at crypto research platform DYOR. “ETH ETFs are experiencing consistent inflows, and public companies are starting to treat ETH as a treasury asset that can generate yield – a more sustainable form of demand compared to retail speculation.”
“Furthermore, nearly a third of the supply is locked in staking, scaling solutions have matured, and with interest rate cuts back on the agenda, the cost of capital is decreasing,” added Kurland. “These factors have transformed $4,000 from a resistance level into a foundation for repricing Ethereum’s upcoming chapter.”