ETH breaks through 4600 USD, reaching a three-year high. Institutional buying and expectations of interest rate cuts drive the rise.

Recently, the price of Ethereum (ETH) has significantly risen, breaking the $4600 mark and setting a new high in nearly three years. This surge is closely related to multiple factors, including increased corporate holdings, record inflows into ETFs, and the market's growing expectations for a possible rate cut by the Fed.

The latest price movement occurred after the release of the US Consumer Price Index (CPI) data. Although the annual inflation rate remains above the central bank's 2% target, it is generally in line with market expectations. This data has prompted investors to increase bets on the Fed potentially implementing its first interest rate cut in nearly four years, which would help ease the overall borrowing environment in the financial markets.

A technology company recently announced plans to raise up to $20 billion to further increase its holdings in Ethereum. The company currently holds approximately $5 billion worth of ETH, making it one of the known largest corporate holders of cryptocurrency. This move aligns with the growing trend of companies incorporating digital assets into their treasury strategies, as the channels for institutions to enter the crypto market continue to expand, accelerating this trend.

Meanwhile, the net fund inflow of Ethereum spot ETFs listed in the U.S. reached $1 billion in a single day, setting the highest record since their launch this year. It is worth noting that this is the second time since August that its net inflow has exceeded that of Bitcoin spot ETFs.

In the past month, the Ethereum to Bitcoin exchange rate has shown strong performance, with the ETH/BTC ratio rising nearly 50% to above 0.37, although it is still 15% lower than a year ago. After experiencing a period of relative sluggishness against Bitcoin, Ethereum's market share in the cryptocurrency market has continued to increase in recent weeks.

The Ethereum network plays a crucial role in asset tokenization, DeFi, and blockchain settlement systems that simulate traditional market infrastructure. Recent software upgrades aimed at improving scalability and reducing transaction costs have provided strong support for these applications.

Regulatory progress has also shaped the current market environment. In the United States, the passage of relevant legislation has provided clearer guidance for certain digital asset activities, which is considered one of the factors for institutional re-engagement.

In addition, other digital asset management companies have also increased their ETH holdings, further boosting market demand. The combination of corporate accumulation, strong inflows into ETFs, and expectations of potential monetary policy easing has collectively driven Ethereum to reach its highest price in nearly five years.

Despite the high volatility that often follows previous pumps, the current market environment reflects a mix of multiple driving factors, with funds continuously concentrating on buying this asset in recent weeks. The combined effect of this series of factors has led to Ethereum's price breaking through key resistance levels, attracting widespread attention in the market.