The price of cryptocurrency Ethereum (ETH) has risen 5% in the last 24 hours and hit a five-year high of $4,497.50.
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Ethereum is now trading at its highest level since the last crypto bull market occurred in 2020/2021. ETH has been the best-performing digital asset since the beginning of July this year, having gained 52% over the past month.
The bull run in Ethereum is being fueled by the view among investors that ETH is “the blockchain of Wall Street” given its role in tokenizing assets, hosting decentralized finance (DeFi) platforms, and powering settlement systems that resemble traditional market infrastructure and payments. Ethereum’s blockchain also helps facilitate stablecoins, which are increasingly popular among crypto investors.
Interest Rate Expectations
Ethereum jumped to a five-year high on a largely benign inflation report in the U.S. The Consumer Price Index (CPI) print for July showed that inflation in America was unchanged from June at a 2.7% annualized rate.
The soft inflation report has raised expectations that the U.S. Federal Reserve will begin lowering interest rates in September of this year after holding them steady since the end of 2024. Lower interest rates are seen as benefiting risk assets such as cryptocurrencies and stocks. A growing number of companies are also buying ETH and adding it to their balance sheets as part of a crypto treasury strategy.
Is ETH a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Ethereum, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of ETH has risen 62.51% in the last 12 weeks.
