Ethereum (ETH) climbed over 5% on Aug. 12 to a multi-year high above $4,500, marking its highest price since December 2021.
The increase coincided with corporate treasury purchases, record inflows into U.S. spot exchange-traded funds (ETFs), and growing expectations that the Federal Reserve will lower interest rates at its September policy meeting.
The latest price move followed the release of U.S. Consumer Price Index data showing annual inflation above the central bank’s 2% target but broadly in line with forecasts.
The figures prompted market participants to increase bets that the Fed will implement its first rate cut since 2020, easing borrowing conditions across financial markets.
Corporate accumulation
Bitmine Immersion Technologies disclosed plans to raise as much as $20 billion for additional Ethereum acquisitions. The company already holds about $5 billion in ETH, positioning it among the largest known corporate holders of the second-largest crypto.
Its heavy accumulation follows a broader trend of companies adopting digital assets in their treasury strategies, a movement that has gained pace as institutional access to crypto markets expands.
U.S.-listed spot Ethereum ETFs registered $1 billion in net inflows on Aug. 11, the highest daily total since their launch earlier this year. The inflows also surpassed those of spot Bitcoin ETFs for the second time in August.
Over the past month, Ethereum has strengthened against Bitcoin, with the ETH/BTC ratio rising nearly 50% to above 0.37, though it remains down 15% compared to a year ago.
Regulatory shifts and network activity
Ethereum’s share of the crypto market has been increasing in recent weeks after an extended period of underperformance relative to Bitcoin.
The network hosts a large share of activity in asset tokenization, DeFi, and blockchain-based settlement systems that mirror traditional market infrastructure. These uses have been supported by recent software upgrades aimed at improving scalability and reducing transaction costs.
Regulatory developments have also shaped the current environment. In the US, the passage of the GENIUS Act has provided greater clarity for certain digital asset activities, which has been cited as a factor in renewed institutional participation.
In parallel, other digital asset treasuries, including Sharplink, have increased ETH holdings, further adding to market demand. The combination of corporate accumulation, strong ETF inflows, and the potential for looser monetary policy has coincided with ETH’s highest price in nearly five years.
While previous rallies have often been followed by periods of heightened volatility, the current market environment reflects multiple overlapping drivers that have concentrated buying activity in the asset over recent weeks.
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