This week, Ethereum, the world’s second-largest cryptocurrency, has experienced a rally that has brought it very close to its record high. On Monday, it started around $4,220 and, within days, reached peaks close to $4,790—a level not seen since 2021. The all-time high stands at $4,866, and many in the market are now wondering if the $5,000 barrier could be the next milestone.
Ethereum began the week trading near $4,223 on Monday, and that same day hit its lowest point at around $4,168. From there, the trend turned clearly upward. On Tuesday, it closed at $4,590, and on Wednesday it jumped again to $4,748.
The cryptocurrency came close to touching $4,787, just a few steps away from its $4,866 record reached in November 2021. In total, the gain over these days has exceeded 11%, a performance that has caught the attention of both seasoned investors and those just starting to take an interest in the crypto world.
Why It’s Going Up
One of the drivers behind this rise comes from the U.S. economy. The latest inflation data showed a slight decline, opening the door for the Federal Reserve to potentially cut interest rates in the coming months. When rates go down, borrowing costs decrease and many investors look for opportunities with greater profit potential, such as cryptocurrencies.
Added to this is renewed interest from major market players in Ethereum. Analysts cited by Reuters reported that UK-based Standard Chartered raised its forecast for the cryptocurrency, predicting it could reach $7,500 by the end of 2025. In addition, specialized outlets like CoinDesk noted growing demand for financial products tied to Ethereum, such as exchange-traded funds (ETFs) already trading in the United States.
Bitcoin’s recent strong performance has also had a “spillover effect,” lifting other major cryptocurrencies. Together, these factors have created an optimistic environment pushing Ethereum close to its record high.
What It Means for People
For many, Ethereum’s rally is more than just an abstract number: it represents the growth of a platform with increasingly real-world applications, from sending money to new ways of saving or investing. A high price sparks conversation and curiosity, potentially attracting those considering their first steps into the crypto space.
However, experts stress one important point: prices can fall just as quickly as they rise. That’s why investing without understanding the risks—especially with money needed for daily expenses—can be a mistake.
These kinds of price moves can also encourage the use of cryptocurrencies for family transactions—such as sending money abroad—although they still do not rival more established traditional methods.
A Brief History of Ethereum
To understand what is happening now, it’s worth remembering where Ethereum came from. The idea emerged in 2013, when Vitalik Buterin, a young Russian-Canadian programmer, published a paper explaining how blockchain technology could be used for more than money, enabling automatic contracts or “smart contracts.”
The project gained momentum in 2014, securing funding through a presale (crowdfunding) that raised over 31,000 BTC—about $18 million at the time.
On July 30, 2015, the Ethereum network (called Frontier) officially launched, creating its first blockchain or “genesis block.”
In 2016, a hack of The DAO—a project built on Ethereum—led to the loss of about $50 million in Ether. The community decided to alter the blockchain (hard fork) to return the funds, giving rise to two networks: Ethereum (ETH) and Ethereum Classic (ETC).
All Eyes on What’s Next
Ethereum is experiencing a week that could mark a turning point in its recent history. With its price brushing against its record high and optimism running high in the markets, the possibility of reaching—or even surpassing—$5,000 is more real than ever.
However, past experience shows that the cryptocurrency market is unpredictable, and sharp rises can be followed by equally steep declines. That’s why, beyond the excitement, analysts emphasize the importance of caution and solid information when making decisions.
Just a few dollars away from its record, Ethereum reflects not only the strength of blockchain technology but also the growing interest in a digital economy that continues to reshape the way we think about money and investment.