Ethereum has surged past $4,300, reaching its highest level since late 2021, thanks to a weakening U.S. dollar and growing expectations of a Federal Reserve rate cut. The cryptocurrency is benefiting from clearer U.S. regulatory guidance on liquid staking and stablecoins, as well as increased institutional interest. The recent SEC clarification that liquid staking services are not classified as securities has opened doors for more institutional investment in Ethereum, enhancing its attractiveness as a long-term investment. Ethereum has gained over 43% this month, with strong activity seen in staking and corporate treasury investments. Analysts note that reduced exchange supply and ETF demand are contributing to Ethereum’s price momentum, while Bitcoin's market dominance is slipping as investors rotate into Ethereum due to better regulatory clarity and softer macroeconomic conditions. Daily exchanges are seeing a consistent outflow of ETH, indicative of a shift towards staking activities, which decreases sell-side pressure on the market.

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