Ethereum Nears $5,000 Record High After Powell Hints at Rate Cuts
Ethereum climbed to a record $4,954.81, nearing $5,000, after Fed Chair Jerome Powell’s dovish comments at the Jackson Hole Symposium raised expectations for September rate cuts. By Monday, ETH traded at $4,776, up 15% from Friday. Spot Ethereum ETFs saw net inflows of $341 million, with corporate treasuries locking 10.6 million ETH (around $50 billion). Major holders include Bitmine Immersion Tech (1.5 million ETH) and SharpLink Gaming (740,800 ETH). Analysts note that lower interest rates drive capital into risk assets, aligning crypto with equities. Regulatory clarity for stablecoins and growing institutional adoption further underpin the rally. Bitcoin also rose 4% on Friday but dipped 1.3% to $113,441 on Monday amid hawkish Fed minutes and geopolitical uncertainty. Traders view Ethereum’s momentum as a key market driver, bolstered by structural shifts and increasing use of its blockchain for settlement, tokenization, and DeFi.
Bullish
Ethereum’s rally to record highs signals strong bullish sentiment. Powell’s dovish tone at Jackson Hole spurred expectations for rate cuts, historically supportive of crypto and equities. The volume of spot Ethereum ETF inflows and corporate treasuries locking 10.6 million ETH underscore robust institutional demand. Similar rate-cut announcements in 2023 and 2024 led to sustained price gains in ETH. Short-term, traders may target $5,000 and higher, fueling momentum. Long-term, growing use of Ethereum for settlement, tokenization, and DeFi, alongside clearer regulatory frameworks for stablecoins, sets a solid foundation for continued appreciation. While macro factors could introduce volatility, the structural drivers suggest a bullish trajectory for Ethereum and broader crypto markets.