Quick Takeaways:
- Ether breaks past its previous record, hitting $4,885 after Powell hints at rate cuts.
- Over $120 million in short trades were liquidated in just one hour.
- Institutions are paying close attention to Ethereum’s expanding stablecoin role.
Ether Breaks Records After Surprise Fed Shift
So what? Ether crossed its 2021 record on Friday, which increased by about 15% to $ 4,885. The Federal Reserve Chairman Jerome Powell came to Jackson Hole just after the breakout came and indicated that the Fed would soon reduce the interest rates. Markets had been high till that point.
Many investors were playing it safe, expecting the Fed to keep things tight. But Powell’s tone flipped the script. When he said that “the balance of risks may be warrant to adjust our policy attitude,” this was just enough to burn fire under the risk property Crypto.
As a result, traders rushed to reposition. And Ether? It exploded. In fact, more than $120 million worth of Ether short positions were liquidated in a single hour.
Those traders betting against Ether were forced to buy it back quickly, which only pushed prices higher.
“No one saw that coming,” said Jordi Alexander, CEO of crypto trading firm Selini Capital. “It’s been a risk-off market lately, but Powell just flipped the switch.”
Ether Breaks Out, Backed by Real Demand
It’s not just a one-day wonder. Ether breaks higher at a time when Ethereum is gaining real-world traction.
Why? Two words: stablecoins and infrastructure.
Ethereum powers over half the world’s stablecoins digital dollars used across the blockchain economy.
Currently, they make up about 40% of total blockchain activity. That gives Ethereum, and Ether, real utility something Wall Street is starting to respect.
Plus, regulation is catching up. The new GENIUS Act and the SEC’s Project Crypto are making it easier for institutions to step into Ethereum without fear of legal headaches.
That’s why big names like BlackRock and Fidelity are rolling out Ether-focused funds.
“The largest macro trade of the next ten years will be in ether,” Tom Lee of Fundstrat stated on CNBC.
“Stablecoins are Ethereum’s ChatGPT moment.”
Meanwhile, Ether shares also held a rally. Companies such as Bitmine immersion and sharplink gaming made 12% and 15% jump as ether. DEFI development, a solana-centric treasury firm, was 21%pop.
However, not everyone was cheering. ETHzilla, a Peter Thiel-backed Ether treasury, dropped over 31% after announcing it would resell up to 74.8 million shares—spooking investors despite Ether’s climb.
What’s Next Now That Ether Breaks Its Limit?
Has Ether broken through this significant resistance level? Should we be concerned?
Maybe but maybe not just yet.
If the Fed really cuts rates in September, crypto could keep running. Lower interest rates tend to favor high-growth, high-risk assets like Ether. So yes, this could be just the beginning.
However, some traders are taking a breath. After such a fast rally, short-term pullbacks aren’t uncommon. Don’t be surprised if Ether dips before finding a new base.
“Momentum is definitely back,” said Alexander. “But this isn’t the time to chase. Smart money waits for the next setup.”
That said, the bigger picture looks strong. Between Ethereum’s role in powering stablecoins, ETF inflows, and growing regulatory clarity, the case for Ether as a long-term play is getting stronger by the day.
