Ethereum (ETH) recorded a blistering rally of over 15% in the past 24 hours and surpassed its 2021 all-time high of $4,869.47 on Aug. 22.
As of press time, the second-largest crypto was trading at a high of $4,888 and was continuing to move upward.
Federal Reserve Chair Jerome Powell prompted the price increase after signaling potential interest rate cuts at the Jackson Hole symposium. After Powell’s dovish remarks in Wyoming, the crypto market rallied more than 4% within the hour to reclaim the $4 trillion mark.
The Fed Chair stated that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” sparking widespread speculation about September rate cuts.
Odds on Polymarket of a potential 25 basis point cut in Sept. 17 jumped from 57% to 79% in a few hours after Powell’s speech.
UBS analysts noted that Powell’s dovish remarks represent “the framing and justification of an inflection in policy bias,” with the Fed Chair shifting mandate emphasis from inflation to employment concerns.
Market-Wide Rally
Bitcoin jumped more than 4% over the past 24 hours, climbing to roughly $117,000 as of press time.
Major cap altcoins followed Bitcoin and Ethereum. BNB recorded a new all-time high of $900 and is priced after climbing over 7% over the period, while XRP, Solana, and Dogecoin posted double-digit percentage gains.
Traditional markets mirrored crypto’s performance, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average each rising approximately 2%.
The US dollar weakened against gold and other major assets as investors anticipated easier monetary conditions.
Recovering from multi-year lows
Ethereum’s breakthrough marks a significant reversal from its multi-year low of $1,385.41 reached in April 2025, the token’s lowest price level since March 2023.
The rally damaged leveraged traders, with Coinglass data revealing over $553 million in liquidated positions during the past 24 hours.
Short sellers bore the brunt of losses, accounting for $308 million in liquidations, while long positions shed about $325 million. Ethereum dominated liquidation volumes with $251 million erased, followed by Bitcoin at $102 million.
The Fed’s potential September rate cut could expand liquidity further, potentially extending crypto’s current momentum as markets remain closely tied to US monetary policy decisions.
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