Ether Soars to $4,300, Outpaces Bitcoin as ETF Flows and Regulatory Optimism Boost Market
Ether (ETH) surged to $4,300 on Monday, rising over 21% in the past week, as strong ETF inflows and increasingly pro-crypto regulatory signals fueled optimism among investors. Bitcoin (BTC) climbed 3% to $120,254, edging closer to its record high.
Other major cryptocurrencies — including Solana (SOL), XRP, Dogecoin (DOGE), and BNB — posted modest gains of nearly 1%, recovering weekend losses and starting the week on stronger footing.
Ether Volatility Rises Amid Bullish Momentum
Ether’s rally has sharply increased short-term implied volatility, creating a noticeable divergence with Bitcoin.
“Bitcoin IV remains near historical lows, but ETH’s short-term volatility has risen significantly,” said Augustine Fan, Head of Insights at SignalPlus, in a note.
“The term structure for ETH is inverted, with near-dated options pricing higher volatility than longer maturities. A month ago, markets assigned just a 5% chance of ETH reaching $4.5K in August — that now looks likely.”
While Bitcoin’s spot price remains rangebound, Ether’s performance has pushed the broader crypto market higher, helped by a renewed wave of institutional participation.
ETF Flows and Regulatory Signals Fuel Ether
Analysts attribute ETH’s strong momentum to sustained demand from spot and derivative-based ETFs, along with favorable regulatory developments that have encouraged institutional re-entry into crypto markets.
Bitcoin is also beginning to show signs of catching up, suggesting broad-based market participation may be returning.
“Assuming no major macro shocks, both BTC and ETH are likely to continue gaining,” said Jeff Mei, COO at BTSE, in a Telegram message to CoinDesk.
“Key drivers this week include U.S. inflation data (CPI, PPI) and potential updates on the Federal Reserve chair nomination — both of which could impact interest rate expectations.”
Traditional Markets Support Risk-On Sentiment
Equity markets also provided tailwinds. The S&P 500 recovered last week’s losses and traded near record levels, while the Nasdaq hit a new high on the back of strong corporate earnings, shrugging off political developments and new U.S. import tariffs.
As macro conditions stabilize and ETF activity accelerates, Ether’s leadership in the crypto rally could be a signal of broader momentum returning across the digital asset space.
