Ethereum Surges Nearly 30% as ETF Inflows Spike, Trump Fuels Retirement Crypto Hopes, and Fed Pivot Bets Mount
Ethereum led a broad crypto market rally Wednesday, bolstered by accelerating ETF inflows, rising expectations of Federal Reserve easing, and renewed political support from the Trump administration. Traders increasingly expect ETH to outperform in the near term, as reflected in surging short-term volatility metrics.
“BTC’s implied volatility remains near record lows, but short-dated ETH vol has jumped — a clear signal that traders see more near-term movement and upside potential in Ether,” one trader told CoinDesk.
Policy Shifts and Political Support Reinforce Bullish Sentiment
Momentum picked up late Tuesday after Treasury Secretary Scott Bessent said the Fed should consider a 50 basis point rate cut in September. That dovish signal, paired with continued ETF demand, triggered a strong reaction across risk assets — especially ETH.
Further boosting sentiment, President Donald Trump reportedly instructed U.S. regulators to explore including crypto and private equity investments in 401(k) retirement plans. Though preliminary, the move could pave the way for long-term structural demand.
Ethereum ETF Flows On Track to Break Records
Ethereum ETFs saw $520 million in net inflows on Tuesday alone, with weekly flows set to exceed $2 billion for the first time — a sign of accelerating institutional interest.
ETH extended its rally to nearly 30% on the week, trading just below $4,700. Analysts noted that similar price action in past cycles often preceded rotations into smaller-cap altcoins and meme tokens.
“Ethereum’s breakout past $4,600 shows increasing institutional conviction,” said Nick Ruck of LVRG Research. “A dovish Fed, ETF speculation, and upcoming scaling upgrades all strengthen ETH’s positioning.”
Market Movers
- Ethereum (ETH): Nears $4,700, +30% on the week
- Bitcoin (BTC): Holds near $121,000, with $122,000 acting as resistance
- Solana (SOL): +12% to $198
- BNB Chain (BNB): +5% to $837
- XRP: +4% to $3.25
- Dogecoin (DOGE) & Cardano (ADA): +8%, tracking ETH gains
Analysts also noted a role reversal in market leadership.
“Altcoins are pulling Bitcoin higher — not the other way around,” said FxPro’s Alex Kuptsikevich. “BTC is testing historical highs and could target $135K–$138K next. Meanwhile, Ethereum is closing in on its all-time high above $4,800.”
Volatility Signals Diverge for BTC and ETH
Market data shows a stark contrast in expectations. ETH’s short-term implied volatility — a key gauge for near-term price movement — has jumped sharply. Meanwhile, BTC’s IV remains subdued near historic lows, pointing to expectations of price stability.
“Ethereum’s volatility spike shows traders are positioning for upside,” said Augustine Fan, head of insights at SignalPlus. “Even traditional equity analysts are now joining the trade — ETH is entering a new phase of market leadership.”
