Ethereum Surges to New Highs Amid Favorable Regulatory Shifts and Weaker Dollar

date
11/08/2025
avatar
GMT Eight
Ethereum has hit its highest price since late 2021, fueled by a weaker dollar and positive regulatory developments. The U.S. government has clarified rules on liquid staking and retirement plan crypto allocations, attracting institutional investment. Strong ETF inflows and reduced selling pressure further propelled the cryptocurrency, which saw an increase of more than 40% in its price this month.

Ethereum has recently surpassed the $4,300 mark, reaching its highest valuation since late 2021. This surge, which represents an increase of more than 40% this month, is fueled by a confluence of factors, including a softening U.S. dollar and a more accommodating regulatory environment. The weakening dollar, coupled with rising expectations of a Federal Reserve rate cut in September, has boosted risk appetite across the market, benefiting cryptocurrencies.

The recent price momentum is also driven by significant regulatory clarity from U.S. authorities. The Securities and Exchange Commission (SEC) recently clarified that liquid staking services do not qualify as securities, which could encourage greater institutional involvement. Furthermore, new White House directives have authorized crypto allocations in retirement plans and prevented banks from denying services to crypto firms based solely on reputational risk. 

Market data indicates strong investor interest. At the same time, exchange outflows remain steady at approximately 33,000 ETH per day, suggesting a growing number of assets are being staked rather than sold. This structural reduction in supply, combined with institutional accumulation, is compounding Ethereum's upward price pressure. Over the past three weeks, Bitcoin's market dominance has also decreased from 62% to below 58%, as investors shift their focus to Ethereum. With central banks leaning toward more dovish policies, some analysts believe Ethereum could continue to benefit from this reflationary trend for the remainder of the year.