【Ethereum Reaches $3,500, Hits Four-Month High】
Ethereum (ETH) price reached $3,500 on Monday morning, hitting a new four-month high, before slightly retreating to $3,475, with a daily increase of 3.6%, and a cumulative increase of 11.4% over the past week, making it the largest gainer among the top five cryptocurrencies by market capitalization.
Over the past year, due to lackluster performance, ETH was jokingly referred to as the "laughing stock," with only a 49% increase since the beginning of the year, lagging behind Bitcoin (BTC) and Solana (SOL) which saw increases of 133% and 150%, respectively. However, the recent surge has allowed ETH to outperform its competitors, reaching a market capitalization of $422 billion, with a short position liquidation amount of $24.6 million in the past 24 hours.
ETF fund inflows also indicate a rebound in market confidence. After a consecutive six-day outflow of $222.7 million, last Friday saw an inflow of $91.3 million.
The overall rise in the crypto market is related to Donald Trump's election as President of the United States. He promised to promote policies supportive of cryptocurrencies, including establishing a strategic Bitcoin reserve and ending the SEC's crackdown. Additionally, the Trump family launched an Ethereum-based crypto project called "World Liberty Financial," which may issue a stablecoin pegged to the dollar, further promoting ETH adoption.
Despite the strong recent performance, Ethereum is still 28.4% away from its all-time high of $4,878 set in 2021, but market optimism may drive further increases.