Why Ethereum price hits new all time highEthereum has surged more than 40% in 2025, outperforming Bitcoin, after reclaiming $4,000 in early August and surpassing $4,500 a few days later. The rally is driven by strong inflows into spot Ethereum ETFs approved by the U.S. Securities and Exchange Commission (SEC) in July 2024 and now holding over $20 billion, led by BlackRock’s ETHA as well as the rise of digital asset treasuries (DATs) centered on ether. Ethereum ETFs also saw renewed inflows, adding $287 million on Thursday and more on Friday, bringing total ETF assets to $30.54 billion. Meanwhile, the Ethereum ecosystem shows strong activity, with stablecoin supply up 10% to $147 billion and total transactions rising to $880 billion, boosting project revenues.Ethereum’s price is also rising due to growing expectations that the Federal Reserve may cut interest rates in September, following weaker-than-expected July jobs data and a higher unemployment rate.A dovish Fed would likely shift investment from low-risk bonds to riskier assets like crypto.