Ethereum Climbs 41% to $4,091 as Demand, Risks Battle

• Ethereum rallies to its highest price since January 2022.
• Institutional inflows rise as bullish derivatives sentiment grows.

Ethereum surged 41% in one month, hitting $4,091—its highest price since January 2022. On March 12, 2024, Cointelegraph reported that strong institutional demand drove this rally amid optimistic market sentiment. This milestone highlights the upward momentum for Ethereum, the second-largest cryptocurrency by market cap, as it continues to attract significant investor interest.

The derivatives market signals increased optimism among traders. On March 12, Cointelegraph also reported that traders have increased their demand for bullish leverage on Ethereum, with the ETH futures premium reaching its highest level in 30 days. This suggests growing confidence in a potential surge toward new highs and less concern about a price drop below $4,000.

Institutional demand has driven Ethereum’s recent gains. Spot Ether exchange-traded funds (ETFs) recorded $792 million in net inflows over the past week. Corporate investments have further bolstered demand, with Semler Scientific acquiring 581 ETH for its reserves. Similarly, MicroStrategy raised approximately $782 million to expand its Bitcoin holdings.

Nevertheless, macroeconomic risks could impede Ethereum's ability to maintain its strong upward trajectory. Cointelegraph noted concerns over a potential recession and the impact of U.S. import tariffs, which have introduced uncertainty into the market and may pose significant barriers to Ethereum surpassing the $5,000 mark in the near term.

The continuation of institutional inflows remains critical to Ethereum’s outlook. Corporate investments and ETF activity reinforce confidence in the asset. However, the market must carefully navigate broader economic hurdles to sustain recent achievements.

As of 18:09 UTC on March 12, 2024, Ethereum was trading at $3,982.87, according to CoinMarketCap. This price reflects a 1.33% increase over the last 24 hours.