Is Ethereum About to Set a New Record? Fed Speech Sends ETH Into Overdrive

The rally added $65 billion to its market capitalization, lifting the total value of ETH in circulation to $581.75 billion. Analysts noted this surge marks the second-largest single-day price increase in the asset’s history.

The move now places ETH around 2% away from its all-time high of $4,891, set in November 2021, putting renewed attention on whether a breakout to new records could happen in the coming weeks.

Powell’s Speech Ignites Market Frenzy

The spark came from Federal Reserve Chair Jerome Powell, who used his Jackson Hole address to signal that a September interest rate cut is firmly on the table. While avoiding an outright pledge, Powell acknowledged that the U.S. labor market is softening, a risk that could outweigh persistent inflationary concerns.

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Investor sentiment flipped almost instantly. Prior to Powell’s remarks, traders had priced in a 70% likelihood of a quarter-point rate cut at the Fed’s next meeting. That probability shot up to 89% afterward, according to market trackers.

Risk-On Sentiment Fuels Crypto Rally

The surge in rate-cut expectations unleashed a broad shift into risk assets, with cryptocurrencies among the biggest beneficiaries. Ethereum led the charge, though Bitcoin and other major tokens also experienced notable gains. Market strategists pointed out that lower interest rates reduce the appeal of safe-haven assets and bonds, encouraging capital to flow into high-growth, volatile markets such as crypto.

If momentum continues, Ethereum could test and possibly surpass its historic peak — a development that traders see as a critical signal heading into the final stretch of the year.

At the time of writing, ETH is trading arund $4,780 after a slight pullback.

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