Ethereum Approaches Its 2021 Peak Near $5,000 as ETF Inflows and Anticipated Fed Cuts May Bolster Momentum

• Ethereum nears $5,000 and eyes 2021 high

• Institutional inflows into spot ETH ETFs exceed $11 billion year-to-date, supporting demand.

• Fed rate cuts expected in 2025 could increase risk asset demand, strengthening Ethereum momentum.

Ethereum price nears 2021 high; ETFs and macro tailwinds push ETH higher—read actionable market context and key levels. Stay informed with COINOTAG coverage.

Ethereum edges closer to its 2021 all-time high near $5,000, fueled by ETF inflows, strong momentum, and expected Fed rate cuts.

• Ethereum nears $5,000, just a few candles away from retesting its 2021 all-time high.
• Institutional inflows exceed $11B into Ethereum ETFs, reducing supply and fueling upward momentum.
• Fed rate cuts expected in 2025 may boost risk appetite, supporting Ethereum’s push toward price discovery.

Ethereum is edging closer to its 2021 all-time high, positioning itself only a few candles away from potential price discovery. Market analysts note that the key test will be sustaining levels above $5,000 for several days, which could spark broader risk appetite for Ethereum and altcoins.

What is driving Ethereum’s move toward the 2021 high?

Ethereum price momentum is being driven by a combination of sustained ETF inflows, higher trading volumes, and macroeconomic expectations. Spot Ethereum ETFs have drawn institutional capital, decreasing available supply and amplifying upward pressure while improved participation across timeframes supports continuation of the rally.

How strong is the technical setup on weekly charts?

The weekly chart shows ETH reaching $4,768 before a modest retracement to $4,723, keeping the $4,864 2021 high within reach. Support zones near $2,851 and $2,168 provide a stable base. Traders will watch for multiple daily closes above $5,000 to confirm a breakout and renewed price discovery.

According to Daan Crypto Trades, “ETH making its way back to the all-time high. Just a few candles away from proper price discovery.” He added that holding above $5,000 could encourage wider risk-on appetite across Ethereum and other altcoins.

Trading volumes increased during recent upward moves, showing participation from retail and institutional traders. Market observer Kamran Asghar noted a breakout–reclaim–pump pattern, saying early entrants from $1,300–$1,400 levels now hold sizable gains while short positions faced liquidations.

Why are institutional inflows important for Ethereum?

Institutional capital via spot ETH ETFs reduces available trading supply and signals mainstream adoption. Since ETF approvals in July 2024, these products have attracted more than $11 billion year-to-date, with notable single-week inflows of approximately $2.87 billion in August—metrics that lift market confidence and liquidity.

Standard Chartered updated its long-term ETH outlook, citing drivers such as institutional adoption, DeFi growth, and Ethereum’s deflationary issuance model. Their forecast range includes $7,500 in 2025, $12,000 in 2026, and up to $25,000 by 2028, reflecting bullish institutional assumptions (source: Standard Chartered, plain text reference).

When could Fed policy impact ETH’s trajectory?

FedWatch indicators point to potential rate cuts in 2025, which historically raise risk appetite and favor equities and crypto assets. Market pricing currently anticipates two cuts in 2025, with the first reduction expected soon—macroeconomic easing could further amplify flows into ETH and related risk assets.

Frequently Asked Questions

How close is Ethereum to its 2021 all-time high?

As of the latest weekly data, Ethereum traded near $4,723–$4,768, with the 2021 high at $4,864. A sustained daily close above $5,000 would confirm momentum toward a new price discovery phase.

Are ETF inflows the main reason ETH is rising?

ETF inflows are a major catalyst, accounting for substantial institutional demand that reduces circulating supply. Other factors include higher trading volumes, macro tailwinds, and positive on-chain metrics.

Key Takeaways

• Momentum: ETH is within reach of its 2021 high; multiple closes above $5,000 would confirm breakout.
• Institutional demand: Spot ETH ETFs have brought over $11B YTD, supporting price appreciation.
• Macro support: Expected Fed rate cuts in 2025 could increase risk appetite and reinforce the rally.

Conclusion

Ethereum price momentum is supported by institutional ETF inflows, rising volumes, and favorable macro expectations. Short-term traders should watch $5,000 closes and key support at $2,851 and $2,168. COINOTAG will continue monitoring on-chain metrics, ETF flows, and macro updates to track whether ETH achieves sustainable price discovery.

By COINOTAG — Published: 2025-09-14 · Updated: 2025-09-14