Ethereum (ETH) has just reached a price of $3,500, the highest in the past four months since July 21. Although the price of ETH has slightly decreased to $3,475 at the time of writing, this cryptocurrency has still increased by 3.6% in a day and 11.4% in the past week – the highest weekly increase among the top five largest cryptocurrencies by market capitalization.
Growth Despite Slower Compared to Rivals
Despite achieving an impressive milestone, Ethereum is still compared and ridiculed for its modest growth rate. Since the beginning of 2024, ETH has only increased by 49%, while Bitcoin ($$BTC ) has increased by 133% and Solana ($SOL ) has surged 150%. However, Ethereum's recent price increase has outperformed its rivals with a 3.6% rise in 24 hours, pushing the market capitalization to $422 billion. Meanwhile, Bitcoin only increased by 1%, while Solana rose by 1.4%.
In addition, this recovery has also led to $24.6 million worth of short positions $ETH being liquidated in the past 24 hours, according to data from CoinGlass.
Capital Flows From ETF Funds and Political Influence
Ethereum is attracting significant capital flows from ETF funds. After six days of total withdrawals of $222.7 million, Ethereum ETF funds recorded $91.3 million in inflows last Friday, according to CoinGlass.
The cryptocurrency market in general has also been positively supported after Donald Trump was elected President of the United States. Friendly crypto commitments such as building a 'strategic Bitcoin reserve' and reducing pressure from the SEC have propelled the market. In particular, the Trump family has introduced a project based on Ethereum, World Liberty Financial – a lending platform and plans to issue a USD-pegged stablecoin.
Still Far From the Peak
Despite signs of recovery, Ethereum is still 28.4% away from its peak of $4,878 in 2021. However, with attention from politics and new capital flows, many expect Ethereum to soon return to a stronger race.
