Ethereum Leads Crypto Rally on Trump Retirement Push, Fed Pivot Hopes, and Surging ETF Inflows
Ether (ETH) extended its outperformance on Wednesday as macro tailwinds, political developments, and record-breaking ETF demand aligned to boost sentiment across crypto markets. While Bitcoin held steady near $121K, altcoins surged—led by Ethereum’s nearly 30% weekly gain.
“BTC volatility remains muted, but ETH’s short-dated implied vol has jumped significantly—suggesting traders expect sharper near-term moves and upside in Ether,” said a trader speaking to CoinDesk.
Political and Macro Catalysts Fuel Risk-On Rotation
Markets responded positively after U.S. Treasury Secretary Scott Bessent floated the possibility of a 50bps Fed rate cut at the central bank’s September meeting—fueling bets on a dovish shift. Sentiment further improved following reports that President Donald Trump ordered regulators to explore adding crypto assets, alongside private equity, to U.S. 401(k) retirement plans.
While the move remains exploratory, such a structural shift could unlock significant retail demand in the long run.
Ethereum ETFs See $520M Inflows, Eye $2B Weekly Record
Ethereum investment products continued to attract large inflows, with over $520 million registered on Tuesday alone. Weekly totals are on track to exceed $2 billion for the first time—supporting Ether’s climb toward $4,700 and reinforcing its status as the institutional favorite during this cycle.
“Ethereum’s breakout above $4,600 signals a strong shift in institutional conviction,” said Nick Ruck, director at LVRG Research. “With ETF demand, Fed easing, and scaling upgrades on the horizon, ETH is primed for further outperformance.”
Market Snapshot
- Bitcoin (BTC): $121,342 — trading near key resistance at $122,000
- Ethereum (ETH): +30% weekly, approaching $4,700
- Solana (SOL): +12% to $198
- BNB (BNB): +5% to $837
- XRP (XRP): +4% to $3.25
- Dogecoin (DOGE) & Cardano (ADA): +8%, following ETH-led flows
Analysts noted an unusual shift in leadership as altcoins pulled Bitcoin higher, reversing typical market dynamics.
“Altcoins—especially Ethereum—are driving the rally. BTC is being dragged upward, not leading,” said FxPro’s Alex Kuptsikevich. “If $122K breaks, the next major resistance lies around $135K–$138K. ETH, meanwhile, is closing in on its all-time high of $4,800.”
Volatility Metrics Reveal Trader Positioning
While BTC’s implied volatility remains near historical lows, ETH’s short-dated options show a sharp uptick in volatility pricing—signaling traders’ expectations of imminent price action centered on Ether.
“We’re seeing mainstream equity analysts join the ETH trade,” said Augustine Fan of SignalPlus. “The divergence in volatility profiles suggests Ethereum will continue to lead near-term momentum.”
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