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

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In a development that can only be described as a rather predictable series of events, Ethereum surged over 14% after a hint from Federal Reserve Chair Jerome Powell, as if the entire digital asset market needed a gentle nudge to remind them of the obvious. The surge brought Ethereum’s price back to $4,820, just shy of its all-time high of $4,891, like an old friend who almost remembers the password to your old account.

Summary

  • Ethereum jumped 14% to $4,820 after Powell’s hint at potential rate cuts, causing market excitement, as one might expect.
  • Trading volume spiked by a ridiculous 95% in 24 hours, surpassing Bitcoin’s volume and nudging ETH closer to its 2021 all-time high, which it seems to enjoy reminiscing about.
  • The move caused a ripple of optimism across the crypto market, as if the stars had aligned, attracting institutional interest reflected in ETFs and equity-linked shares.

According to crypto.news data, Ethereum (ETH) surged over 14% on August 22, jumping from a daily low of $4,205 to $4,820. This left it tantalizingly close to its $4,891 all-time high from four years ago, which some might argue it has been obsessing over for quite some time.

The token’s trading volume skyrocketed by 95%, reaching $68.22 billion in 24 hours-more than enough to make Bitcoin’s $79.86 billion look a bit modest in comparison. Bitcoin itself saw a humble 4% rise, bringing it to $116,640. It’s almost as if everyone was waiting for permission to get excited.

ETH’s impressive rally followed a rather carefully-worded speech by Jerome Powell at Jackson Hole, Wyoming, where he hinted at potential rate cuts, because of course, that’s the kind of thing that gets crypto markets to act like caffeinated squirrels. He mentioned that the “shifting balance of risks may warrant adjusting our policy stance,” which essentially meant, “Look, I might do something, but let’s not get ahead of ourselves.”

“This is bullish for the front end of the yield curve and risk assets, where bitcoin is a fast horse in the race. A dovish tilt could supercharge BTC’s narrative as a hedge against fiat uncertainty, accelerating institutional accumulation and liquidity. While the mid and long end of the curve remain uncertain, bitcoin’s sensitivity to macro signals means it’s poised to ride any wave of optimism from rate cut expectations,” said Jessy Gilger, investment advisor at Bitcoin financial services firm Unchained.

Fed Signals Must Meet Ethereum Fundamentals

Marcin Kazmierczak, Co-founder of RedStone, suggested that a careful Fed easing cycle might be the final push needed to break Ethereum’s $4,800-$5,000 resistance barrier. He cautioned, however, that Powell’s tone was intentionally cautious, like a well-mannered elephant in a china shop. Growth, he explained, can’t rely on monetary policy alone. It needs substance, something like, oh, I don’t know-actual adoption?

Kazmierczak pointed out that any sustained rally in Ethereum must be supported by solid fundamentals, which is an eloquent way of saying “let’s not get too carried away, folks.” He emphasized the importance of institutional flows via spot ETFs and the resurgence of decentralized finance network activity. These, not the whims of Fed policy, are the pillars that will hold Ethereum’s new heights, should it decide to go there.

“The convergence of institutional flows, DeFi activity, and potential Fed accommodation creates a compelling setup for ETH to potentially reach the $5,000-$6,000 range that analysts have been targeting for 2025,” Kazmierczak said in a statement to crypto.news. It’s almost as if Ethereum has ambitions, but only when the stars align and the Wi-Fi is strong.

And, as if to take things to the extreme, Arthur Hayes, chief investment officer at Maelstrom, has projected that Ethereum’s momentum could propel it all the way to $20,000 by the end of the cycle. Because why not? In a recent interview on Crypto Banter, Hayes confidently declared, “The chart says it’s going higher, you can’t fight the market. I think [Ethereum] goes to $10,000, $20,000, before the end of the cycle.” If only charts could talk, they’d probably say, “Hold on to your hats.”

Public Markets Respond to ETH Price Surge

The enthusiasm surrounding Ethereum’s price surge spread like wildfire through public equity markets, with companies holding substantial ether treasuries-some of which had been battered earlier in the week-rising with the tide. Bitmine Immersion and SharpLink Gaming saw their shares jump 14% and 12%, respectively, as if the markets were just waiting for an excuse to get happy.

But not all is rosy in the land of institutional interest. Ether-focused ETFs, which had experienced a four-day streak of outflows, saw $287.6 million in inflows on Thursday. Still, they’re on track for their worst week since May, leaving the question of how much institutional appetite will remain if the Fed’s path stays as unclear as an old cable TV signal.

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2025-08-23 00:27