Ethereum (ETH) hit a record price of $4,885 on Coinbase on Friday after a speech by Federal Reserve Chair Jerome Powell suggesting interest rate cuts left traders relieved going into the weekend.
The token rose nearly 15% over the past 24 hours as part of a broader rally in financial markets.
Nevertheless, ether’s rally stood out among other tokens. Bitcoin was also up, but only by about 4%. The CoinDesk 20 Index, which tracks the broader crypto market, rose 9% over the same period.
Powell on Friday gave hints that the Fed will indeed cut interest rates in September, as initially anticipated by traders. Hope, however, faded over the last few days, causing a significant reaction in global markets during Friday trading hours.
Ether has not only profited from macroeconomic circumstances this year, but even more so from renewed institutional interest in the network behind the token.
Several companies have started accumulating ether as part of their treasury strategy, including ETHZilla that is backed by billionaire investor Peter Thiel. Some believe that Ethereum will eventually be Wall Street’s favorite blockchain to build on, fueling demand for its native token.
As a result, ether has outperformed bitcoin this year, up about 45% since the start of 2025 while the largest cryptocurrency is up 25%. Some other ether-related tokens, such as Lido (LDO) and Ethena (ENA), also benefited from ETH’s swift rally.