Jerome Powell rate-cut hint jolts Ethereum price toward 2021 ATH territory

A wave of optimism of Jackson Hole swept through the markets of digital assets, the Ethereum price leading the charge. The second largest cryptocurrency by market capitalization increased by more than 14%, putting the historical view of $ 4,891 of all time.

According to Crypto.News, Ethereum (Ethn) increased by more than 14% on August 22, going from a daily hollow of $ 4,205 to negotiate up to $ 4,820 from press time, just 1.5% of its high price of $ 4,891, set four years ago.

The token trading volume jumped 95% in the last 24 hours to exceed 68.22 billion dollars, eclipses Bitcoin (BTC) 79.86 billion dollars during the same period. Friday, the original cryptocurrency won 4% to exchange hands at $ 116,640 at the time of the editorial staff.

The amazing ethodic rally alongside a wider rebound in the wider cryptography market came while the president of the federal reserve Jerome Powell, during his Keynote to Jackson Hole, Wyoming, pointed out a potential pivot in monetary policy, declaring that “the current risk balance can justify the adjustment of our political position”.

“This is optimistic for the front end of the yield curve and risk assets, where Bitcoin is a quick horse in the race. An endowed inclination could overcome the story of the BTC as a coverage against the uncertainty of the Fiat, accelerating institutional accumulation and liquidity. Jessy Gilger, investment advisor of the Bitcoin Unchained financial services company, said.

Fed signals must respond to Ethereum fundamentals

According to Marcin Kazmierczak, co-founder of Redstone, a descending cycle of the measured Fed could be the final catalyst required so that ETH breeze from the resistance barrier from $ 4,800 to $ 5,000 and trace a course to new heights of all time. However, he warns that the deliberately cautious tone of Powell is a reminder that sustainable growth cannot rely solely on speculation on monetary policy.

Kazmierczak argues that any sustainable rally must be anchored by a continuous fundamental adoption, specifically pointing to robust institutional flows via ETF Spot and a resurgence of the activity of the decentralized financial network. These fundamental principles, rather than the feeling of Fed Fugace, provide the rocky substratum necessary for a real escape.

“The convergence of institutional flows, DEFI activity and potential Fed housing create a convincing configuration for ETH in order to potentially reach the $ 5,000 for $ 6,000 that analysts have been targeting since 2025,” said Kazmierczak in a press release obtained by crypto.news.

This optimistic technical and fundamental configuration has encouraged surprisingly optimistic predictions. Arthur Hayes, director of investments at Maelstrom, planned that Ethereum’s momentum could propel him to $ 20,000 drugs at the end of the cycle.

In a recent interview On cryptographic jokes, Hayes said: “The graph says it’s going higher, you can’t fight the market. I think [Ethereum] Go to $ 10,000, $ 20,000, before the end of the cycle. This daring forecast, although speculative, captures the construction of intensely optimistic feeling around the potential of Ethereum.

Public contracts respond to the overvoltage of ethn prices

Euphoria of Ethereum prices has bled in public stock markets, offering a power of attitude for the institutional exhibition in Ethereum. Companies with significant ether treasures, which had been beaten earlier in the week in the middle of a technological sector sale, torn in tandem with the price of the room. Bitmine immersion and Sharplink game saw their actions jump 14% and 12% respectively, according to CNBC data.

However, the prospects remain superimposed. ETF -centered ETHERs, which broke a sequence of four days of outings with $ 287.6 million on Thursday, have been in pace for their worst week since May. This divergence highlights the tension between short -term speculation and long -term allowance, leaving the question of how institutional appetite will continue to continue if the Fed’s political path remains uncertain.