ETH May Retest $4,000 on Hawkish Powell Talk Jackson Hole
Arthur Hayes, former BitMEX CEO, warns that Ethereum may briefly test $4,000 if Federal Reserve Chair Jerome Powell delivers hawkish remarks at the Jackson Hole symposium. Powell’s speech on Friday could trigger short-term market volatility for ETH. Despite the risk of a pullback, Hayes remains bullish on Ethereum’s long-term outlook. He forecasts that ETH could climb to $10,000–$20,000 by the end of the current cycle. Hayes cites growing capital inflows from digital asset treasury firms as a key driver for price gains. He also highlights the role of US fiscal policy and election-driven monetary expansion, predicting that aggressive money printing will support cryptocurrency markets through mid-2026 and beyond. Traders should monitor Powell’s tone at Jackson Hole and broader political developments for potential impact on ETH price action.
Bullish
The report combines a short-term trigger—potential Fed hawkishness that could push ETH toward a key support level—with a strong long-term bullish case driven by digital asset treasuries and fiscal expansion. Historically, Powell’s hawkish speeches have led to transient crypto dips followed by swift recoveries, as seen in late 2022. Hayes’s $10,000–$20,000 target underscores a structural uptrend. Traders may view any dip to $4,000 as a buying opportunity, reinforcing positive sentiment. Overall, the balance of catalysts supports a bullish market outlook.