Ethereum (ETH) prices climbed sharply on Friday, hitting $4,890 on Deribit, marking a new all-time high not seen in nearly four years. This upward move propelled the cryptocurrency's market capitalization to approximately $591 billion, closing in on the $600 billion milestone. While Bitcoin and several other leading cryptocurrencies had already secured all-time highs earlier this year, Ethereum’s delayed breakthrough highlights the growing strength of its ecosystem as investors continue pouring capital into the network.
Breaking Through: Market Sentiment and Capital Inflows
Data from Deribit shows ETH briefly touched $4,890 during Friday’s trading session, surpassing the previous peak of $4,878 set in November 2021. Analysts attribute the rally to sustained capital inflows into the Ethereum ecosystem, driven by increasing adoption of decentralized applications, staking yields, and institutional interest. Despite a slower pace compared to Bitcoin’s rally, Ethereum’s price action is seen as a validation of its role as the foundation for DeFi and NFT markets.
Market sentiment remains broadly positive. Traders are closely watching to see if Ethereum can maintain momentum beyond the new milestone. Some technical indicators suggest that the $4,890 level could act as resistance, but a successful breakout could open the door to further gains. On-chain data also shows active addresses and transaction volumes have been rising, indicating robust network usage.
Market Cap Nears $600 Billion, Strengthening Second Place
Ethereum’s market capitalization reached $591 billion on Friday, cementing its position as the second-largest cryptocurrency by market cap, with a dominance of around 18%. This represents a significant increase from the $550 billion peak seen during the 2021 bull run. The milestone comes amid a broader crypto market rally, with total market capitalization exceeding $3.2 trillion for the first time.
Investor attention is now turning to whether Ethereum can sustain its upward trajectory. The recent launch of spot Ethereum ETFs in the United States has added a layer of institutional liquidity, while network upgrades like Proto-Danksharding (EIP-4844) are expected to improve scalability and reduce fees. However, macroeconomic headwinds, such as potential interest rate hikes or regulatory actions, could temper enthusiasm.
Outlook: Can the Rally Continue?
Looking ahead, key support levels are established near $4,600, while resistance above $5,000 is now in focus. The futures market shows elevated open interest, suggesting traders are positioning for further upside. Long-term holders remain confident, as the Ethereum network continues to see strong developer activity and total value locked (TVL) in DeFi protocols surpasses $150 billion. With the crypto market in a bullish phase, Ethereum appears poised to test higher levels, though volatility is expected.