ETH price surpasses $4,300, the highest since 2021 thanks to a weakening USD and support from America.

Ethereum has surpassed the 4,300 USD mark today, reaching its highest level since the end of 2021 as investors react to the weakening USD, increased institutional interest, and the continuing decline in ETH supply on exchanges.

The weakening of the USD along with expectations that the Federal Reserve will cut interest rates in September has boosted risk appetite across various assets. The crypto market has benefited accordingly, with Ethereum outperforming Bitcoin thanks to signals of capital rotation and strong accumulation from corporate treasuries as well as ETF issuers.

According to TradingView data, ETH recently traded around 4,300 USD, up more than 46% in the month and is the highest level since 9/12/2021.

Weekly ETH price chart | Source: TradingViewThe upward momentum is further reinforced as last week, the U.S. Securities and Exchange Commission (SEC) confirmed that liquid staking services do not constitute a securities offering – a move that helps remove a significant legal barrier for Ethereum. Analysts believe this paves the way for institutional capital to participate more robustly in yield-generating ETH products, while also enhancing ETH's appeal as a long-term holding asset.

The policy context also shows signs of easing: some stablecoins with guaranteed buyback provisions may be classified as "cash equivalents" under the new accounting guidelines; the White House allows the allocation of crypto assets into the 401(k) retirement fund and prohibits banks from denying services to crypto businesses solely based on reputational risk.

Jamie Coutts, a cryptocurrency analyst at Real Vision, stated that the shift in legal stance is positioning Ethereum "on par with AI, becoming a pillar of innovation and growth for the U.S. economy." He emphasized that Ethereum leads in terms of decentralization and tokenization – indicators that reinforce ETH's central role in global blockchain development. Coutts further mentioned that the flow of ETF capital coupled with the tightening supply from corporate treasuries is "resonating" to drive ETH prices.

Independent analyst Axel Adler Jr. shares the same view, citing the ETF capital flow of 5 billion USD and the record trading volume of 238 billion USD on the Ethereum network in July. The amount of ETH withdrawn from the exchange remains around 33,000 ETH per day, indicating an increase in staking activity and a decrease in selling pressure.

The market dominance of Bitcoin has fallen from 62% to below 58% over the past three weeks, as investors rotate capital into Ethereum amid a clearer regulatory framework and softer macro data. With the Fed, the Bank of England, and many global central banks leaning towards a dovish stance, experts predict that Ethereum may continue to benefit from the trend of reallocating risk assets until the end of the year.

Thạch Sanh