Ethereum (ETH) surged to $3,500 on Monday, marking its highest price since July 21, before slipping slightly to $3,475.
Ethereum (ETH) surged to $3,500 on Monday, marking its highest price since July 21, before slipping slightly to $3,475. The cryptocurrency saw a daily increase of 3.6% and an 11.4% rise over the past week, making it the strongest gainer among the top five digital assets by market capitalization. In the same 24-hour period, $24.6 million in Ethereum short positions were liquidated, reflecting intensified market activity.
The rally follows renewed interest in Ethereum exchange-traded funds (ETFs), which recorded $91.3 million in inflows last Friday. This comes after six consecutive days of outflows totaling $222.7 million. Despite the recovery, Ethereum remains 28.4% below its all-time high of $4,878, reached in 2021.
Ethereum’s performance contrasts with its peers, as it has grown 49% since the beginning of the year, trailing Bitcoin's 133% and Solana's 150%. Still, the recent price movement marks a significant shift, with Ethereum outperforming its competitors over the past week.
Political developments have played a role in shaping the cryptocurrency market. Donald Trump’s election as the 47th President of the United States has fueled optimism in the sector, driven by his promises to create a strategic Bitcoin reserve and ease regulatory pressure from the U.S. Securities and Exchange Commission (SEC).
The Trump family’s involvement in cryptocurrency has also drawn attention. World Liberty Financial, an Ethereum-based borrowing and lending platform associated with the Trump brand, recently raised $14 million in an initial token sale. The project plans to introduce a stablecoin pegged to the U.S. dollar. While Donald Trump and his family are featured prominently in the branding, the project’s website clarifies that they do not hold official positions within the organization.
Ethereum’s recent gains come amid broader critiques of its performance. Over the past year, many in the crypto community have ridiculed its comparatively modest returns. Despite the jokes, the cryptocurrency’s current rally highlights its potential to regain market strength. However, analysts caution that Ethereum must address ongoing challenges, including scalability and transaction costs, to maintain its momentum.
As Ethereum charts its recovery, its latest rally underscores the shifting dynamics within the cryptocurrency landscape. Investors are watching closely to see if the asset can sustain its upward trajectory and compete more effectively with other major tokens.
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