Ethereum Surges to Highest Level Since 2021 Amid Spot ETF Optimism
Ethereum (ETH) saw a notable price surge on Thursday, reaching its highest level since late 2021. The second largest cryptocurrency rose by 9.9% to trade at $4,699.15, supported by renewed optimism around the potential approval of a spot Ethereum ETF in the United States.
This upward momentum comes during a broader rally in the cryptocurrency market, with Bitcoin holding steady around $114,000 amid geopolitical uncertainty and trade tariff fears. Risk appetite in traditional markets remains subdued, primarily due to U.S. President Donald Trump’s newly imposed tariffs, which took effect this week. The tariffs range from 10% to 50% and target major global economies. Trump also announced a 100% tariff on all semiconductor imports, set to begin in the coming weeks.
Despite these macroeconomic pressures, Ethereum has shown resilience. According to an analysis featured in Yahoo Finance, the expectation of a spot ETF approval has played a significant role in Ethereum’s recent price movements. The market appears to be pricing in the regulatory momentum, especially after the SEC’s softened stance on crypto ETFs earlier this year.
While the SEC has yet to formally approve a spot Ethereum ETF, several applications remain under review. If approved, such financial products could pave the way for increased institutional investment in ETH, similar to the impact seen after Bitcoin spot ETFs were launched in January 2024.
Meanwhile, altcoins also traded higher within narrow ranges. Solana and Cardano gained nearly 2% each, while XRP climbed 1.5% to $2.9951. Meme coins such as Dogecoin and $TRUMP token also saw moderate gains of 2.5% and 1.6%, respectively.
The crypto market’s reaction indicates that investors are cautiously optimistic. However, many remain focused on the upcoming Federal Reserve meeting on July 31, where guidance on interest rate cuts for 2025 may emerge. Persistent high interest rates have so far weighed on risk assets, including crypto.
Conclusion
Ethereum’s breakout beyond the $4,600 mark highlights growing institutional anticipation and confidence surrounding potential spot ETF approval. While regulatory clarity remains crucial, the recent surge reflects Ethereum’s role in the next phase of crypto market development.
Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making investment decisions
