By Ethereum has broken through the $3,000 barrier for the first time in 2025, currently trading at $3,020.86, marking a massive turnaround from its April low of $1,794.
The milestone comes as Bitcoin surges to new all-time highs above $118,400, creating perfect storm conditions for the second-largest cryptocurrency to begin its own parabolic advance.
The breakthrough follows a grueling eight-month battle that saw Ethereum decline from January’s opening near $3,298 to its cycle low in April.
Historical price data reveals a volatile journey through 2025, with February closing around $2,900, March at $2,650, and the devastating April collapse to $1,794 before recovery began.
President Trump’s recent declaration on Truth Social that crypto is “through the roof“ has triggered massive buying pressure across digital asset markets.
The timing of Trump’s endorsement, combined with unprecedented dollar weakness, has created ideal conditions for risk asset appreciation, with institutional investors interpreting this as a signal of continued monetary accommodation.
The Ethereum breakout coincides with Bitcoin’s explosive rally past $117,000, which liquidated over $1.14 billion in leveraged positions within 24 hours.
Over $243 million in Ethereum liquidations alone contributed to the market-wide short squeeze, which pushed both cryptocurrencies to new highs.
Dollar Collapse Fuels Crypto Rally Across Major Assets
Trump’s proposed 300-basis-point interest rate cut has created massive tailwinds for alternative assets, as the dollar experiences its worst performance since 1973.
The Dollar Index has fallen 10.1% year-to-date, trading 6.5 points below its 200-day moving average, the largest margin in 21 years.
The emergency-level monetary intervention into a growing economy, with an annual growth rate of 3.8%, would push inflation above 5% while driving the dollar down an additional 10%.
Historical precedent warns against such aggressive policy, as the Federal Reserve has never implemented cuts exceeding 75 basis points outside recession periods.
Kobeissi Letter analysis projects dramatic asset price inflation following potential rate cuts, with gold targeting $ 5,000 per ounce and continued capital flight into cryptocurrencies.
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