Ethereum Hits $4,950 After Powell’s Rate Cut Signal

Ethereum Breaks Fresh Record Above $4,950 On Powell’s Dovish Shift

Ethereum extended its rally to new heights on Sunday, climbing to an all-time high of $4,954.81 before retracing modestly to trade near $4,719. The second-largest cryptocurrency surged on the back of Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole symposium, which fueled expectations of interest rate cuts in September.

Since Powell’s comments on Friday, Ethereum has outperformed the broader market, breaking its previous 2021 record and sustaining bullish momentum through the weekend. Although it pulled back 1.45% in the past 24 hours due to cascading liquidations, the underlying demand for Ethereum remains strong. Analysts noted that the selloff coincided with $210 million in long positions being liquidated, pushing Ether below the key $4,800 psychological threshold.

Bitcoin Struggles While Ethereum Shines

While Ethereum posted new highs, Bitcoin slipped 2.19% over the same period, extending its seven-day losing streak to 2.74%. The leading cryptocurrency fell to $110,779, erasing Friday’s Powell-driven gains and marking its weakest price since July 10. Analysts attributed part of the decline to miners selling over 5,000 BTC worth nearly $570 million, breaking critical support at $118,859 and triggering further forced selling.

Market Reaction To Powell’s Remarks

Powell’s words at Jackson Hole—“The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance”—were interpreted as confirmation that the Fed is ready to begin cutting rates. Crypto markets responded immediately, with Ethereum jumping nearly 7% within minutes to $4,600 before consolidating and pushing higher across the weekend.

Ethereum’s rally showcased a resilience that Bitcoin lacked, driven by structural factors such as staking, which locks up nearly one-third of its supply, reducing liquidity. In addition, corporate treasuries have started accumulating Ethereum for yield opportunities, further boosting demand.

Institutional Buying Adds Fuel

Over the weekend, blockchain analytics firm Arkham Intelligence reported that Bitmine Immersion Technologies, chaired by Wall Street veteran Tom Lee, purchased $45 million worth of Ethereum. Such institutional accumulation reinforces confidence in Ethereum as a long-term asset, particularly at a time when yield generation and staking rewards make it attractive to treasuries.

Technical Picture And Market Outlook

Technical charts suggest Ethereum may face resistance near its recent peak, with indicators showing overbought conditions. Still, the token’s ability to hold above $4,700 demonstrates that Powell’s dovish tone continues to support bullish sentiment.

Despite the short-term correction, both Ethereum and Bitcoin remain significantly higher than levels before Powell’s Jackson Hole speech, highlighting how central bank policy continues to dictate crypto market momentum. Traders are now looking to the Fed’s September 18 meeting and upcoming U.S. economic data for clues on the trajectory of interest rates.

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