Ethereum Reaches New Peak, Approaches $5,000 Following Powell’s Accommodative Jackson Hole Address

Ethereum reached a new peak over the weekend, approaching the $5,000 threshold, following comments from Federal Reserve Chair Jerome Powell that indicated potential rate reductions, which sparked a widespread rally in risk assets.

The second-largest cryptocurrency achieved a price of $4,954.81 on Sunday, representing its first all-time high since 2021. By Monday, it was trading slightly lower at $4,776.46, still reflecting an increase of nearly 15% from Friday’s figures.

This increase occurred as the cryptocurrency markets responded positively to Powell’s statements at Jackson Hole, where he suggested that interest rates might soon be decreased. The anticipation of more accommodative policy boosted both equities and digital assets, with Bitcoin gaining 4% on Friday and Ether leading the upward trend.

$ETH appears poised to reach $5K very soon.
Following that, Ethereum may take a pause before the next upward movement.
$10,000+ ETH is on the horizon this cycle, and there’s nothing that can impede that. pic.twitter.com/DIuCjqCtm7

— Ted (@TedPillows) August 24, 2025

Powell’s Jackson Hole Remarks Ignite Surge In September Cut Anticipations

Trump has openly urged Powell for months to lower rates, criticizing him in June as “a political guy who’s not a smart person.”

Powell’s remarks significantly altered market expectations, with CME FedWatch data indicating an 87% likelihood of a September cut, up from 75% just a day prior.

Ethereum’s ascent has been supported by both macroeconomic factors and structural changes within the cryptocurrency sector. Ether treasuries have increased, driven by corporate buyers and ETFs. Data from Strategic ETH Reserve reveals that 10.6 million Ether, valued at over $50 billion, is now locked across various entities and funds.

Among the largest holders is Bitmine Immersion Tech, which recently acquired $45 million worth of Ether. The firm, led by Wall Street veteran Tom Lee, now possesses 1.5 million ETH, valued at over $7 billion. Other significant entities include SharpLink Gaming with 740,800 ETH and Coinbase with 136,800 ETH.

Nine Spot Ether Funds Experience Inflows With No Outflows Reported

Spot Ethereum ETFs saw net inflows of $341 million on Friday, with none of the nine funds reporting outflows, according to market data.

This accumulation reflects the evolving market dynamics. Ether has consistently remained above $4,000 this month, a level it struggled to surpass since 2021.

In contrast to Bitcoin, which declined 1.3% on Monday to $113,441, Ether has been at the forefront of market momentum in recent weeks.

Ethereum Now Valued Like Equities As Investors Welcome Rate Sensitivity

Regulatory changes have also contributed to the rally. A more favorable landscape for stablecoins and institutional adoption has attracted traditional finance firms to Ethereum. Analysts highlight the increasing utilization of the blockchain for settlement, tokenization, and DeFi protocols as enhancing its long-term attractiveness.

Charley Cooper, chief operating officer of Ava Labs, stated that Powell’s position was pivotal. “Any reductions in rates are beneficial for the crypto markets since lower rates enhance the flow of money into riskier assets like crypto,” he noted.

He further mentioned that Powell has consistently shown an interest in blockchain, implying that his perspective holds significance beyond monetary policy.

Cooper contended that the real narrative is how cryptocurrency markets now correlate with traditional risk assets. “The early days when people thought crypto operated independently of macro factors are gone,” he remarked. “The fact that crypto now seeks rate cuts because they elevate prices indicates it is being valued like conventional equities.”

Fed Minutes, ETF Outflows, Tariff Uncertainty Impact Bitcoin

Meanwhile, Gadi Chait, head of investment at Xapo Bank, remarked that Bitcoin’s decline was not unexpected.

“Short-term fluctuations like this are anticipated; they’ve long been characteristic of the asset,” he stated. This particular decline likely stemmed from hawkish Fed minutes, ETF outflows, and uncertainties surrounding tariffs and geopolitics, he added.

For Ethereum, however, the breakout over the weekend signifies a crucial milestone. With its price nearing $5,000 and corporate treasuries growing, the token has reaffirmed its position as the catalyst for crypto momentum.

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