Ethereum Rallies Near Record High on Fed Rate-Cut Optimism
Fed Chair Jerome Powell’s dovish remarks at Jackson Hole reignited hopes for a September rate cut, fueling a crypto rally led by Ethereum. ETH surged toward $4,834—its all-time peak—while Bitcoin held around $117,000 and Chainlink reached $27.11, marking its year-to-date high. Social sentiment on “Fed rate cut” chatter hit an 11-month high, driving buy-the-rumor momentum. On-chain data offers mixed signals: BTC network activity and transaction volume have cooled even as exchange balances for both BTC and ETH rise, signaling potential short-term selling pressure. At the same time, metrics like falling ETH exchange reserves and an increasing mean dollar-invested age point to long-term holder accumulation and room for further upside. Traders should watch exchange balances, active addresses, futures funding rates and regulatory developments. Balanced risk management is essential as markets price evolving Fed expectations.
Bullish
Jerome Powell’s dovish Fed comments and rising rate-cut expectations have significantly boosted risk appetite and liquidity, driving Ethereum close to its all-time high and lifting Bitcoin and Chainlink. Short-term on-chain signals—cooling network activity and higher exchange balances—warn of potential corrections, but long-term metrics like falling ETH exchange reserves and increased mean investment age show sustained accumulation by holders. Historically, Fed easing outlooks have sparked crypto rallies. Overall, the balance of bullish catalysts and underlying on-chain strength suggests further upside potential, warranting a bullish view while managing risks.