Ethereum Surges Past $2,500 Amid Broad Crypto Recovery

Ethereum's price has risen to $2,458 amid a broader crypto recovery, outpacing Bitcoin's growth.

The Ethereum rebound coincided with falling US Treasury yields and a weaker US dollar. The 10-year Treasury yield dropped to around 4.74% on September 3 as traders reduced their expectations for another Federal Reserve interest-rate increase.

Lower yields can make riskier assets more attractive relative to government bonds, which could explain the crypto market's recovery. In fact, Ethereum gained over 30% between August 17 and 21, although this does not necessarily prove that monetary-policy expectations caused ETH's move.

However, recent exchange-traded fund (ETF) demand has weakened, with US spot Ether ETFs recording $48.2 million in net outflows on September 2, following a much smaller $8.6 million inflow the previous day, Farside Investors data shows.