Ether (ETH) retreated at the start of the week after surging to a new all-time high over the weekend. The world’s second-largest cryptocurrency fell 4% Monday to $4,631.61, according to Coin Metrics, following its record peak of $4,954.81 on Sunday — the first time ETH has broken past its 2021 highs. Bitcoin (BTC), meanwhile, traded relatively flat at $112,488.80 after sliding to $110,779.01 over the weekend, its lowest since July.

Market volatility was amplified by Federal Reserve Chair Jerome Powell’s signal of potential rate cuts, which triggered renewed investor appetite for risk assets on Friday. The rally led to more than $420 million in forced liquidations across ETH and BTC long positions, according to CoinGlass. Still, Ether has been leading the broader crypto market in recent weeks, buoyed by regulatory progress, rising tokenization projects, and institutional accumulation by firms like Bitmine and SharpLink.

Analysts point to ETH’s sustained momentum above $4,000 as a sign of structural strength. Nearly a third of Ether’s supply is now locked in staking, while scaling solutions continue to mature. On Friday alone, Ether ETFs recorded $341 million in inflows, led by Fidelity’s FETH fund, while bitcoin ETFs posted their sixth straight day of net outflows, dominated by BlackRock’s IBIT.