Ethereum climbed to a new record over the weekend, edging closer to the $5,000 mark, after Federal Reserve Chair Jerome Powell signaled rate cuts that fueled a broad rally in risk assets.
The second-largest cryptocurrency hit $4,954.81 on Sunday, marking its first all-time high since 2021. By Monday, it was trading slightly lower at $4,776.46, still up nearly 15% from Friday’s levels.
The surge came as crypto markets cheered Powell’s remarks at Jackson Hole, where he hinted that interest rates could soon be lowered. The prospect of looser policy lifted equities and digital assets alike, with Bitcoin rising 4% on Friday and Ether leading the rally.
Powell’s Jackson Hole Comments Spark Surge In September Cut Expectations
Trump has publicly pressured Powell for months to cut rates, with the president criticizing him in June as “a political guy who’s not a smart person.”
Powell’s comments shifted market expectations sharply, with CME FedWatch data showing an 87% chance of a September cut, up from 75% just a day earlier.
Ethereum’s run has been bolstered both by macro factors and by structural shifts within the crypto sector. Ether treasuries have swelled, with corporate accumulators and ETFs driving demand. Data from Strategic ETH Reserve shows 10.6m Ether, worth more than $50b, now locked across entities and funds.
Among the largest holders is Bitmine Immersion Tech, which recently added $45m worth of Ether. The firm, chaired by Wall Street veteran Tom Lee, now controls 1.5m ETH, worth over $7b. Other top entities include SharpLink Gaming with 740,800 ETH and Coinbase with 136,800 ETH.
Nine Spot Ether Funds See Inflows With Zero Outflows Reported
Spot Ethereum ETFs recorded net inflows of $341m on Friday, with none of the nine funds posting outflows, according to market data.
That accumulation shows the changing market dynamic. Ether has consistently held above $4,000 this month, a level it repeatedly failed to breach since 2021.
Unlike Bitcoin, which slipped 1.3% on Monday to $113,441, Ether has led the market’s momentum in recent weeks.
Ethereum Now Priced Like Equities As Investors Embrace Rate Sensitivity
Regulatory shifts have also supported the rally. A more favorable environment for stablecoins and institutional adoption has drawn traditional finance firms into Ethereum. Analysts point to growing use of the blockchain for settlement, tokenization and DeFi protocols as adding to its long-term appeal.
Charley Cooper, chief operating officer of Ava Labs, said Powell’s stance was crucial. “Any cuts in rates are great for the crypto markets since lower rates increase money flow into riskier assets like crypto,” he said.
He added that Powell has long shown an interest in blockchain, suggesting his outlook carries weight beyond monetary policy.
Cooper argued the real story is how crypto markets now move with traditional risk assets. “Gone are the early days when people believed crypto operated independently of macro factors,” he said. “The fact that crypto now wants rate cuts because they boost prices shows it is being priced like regular equities.”
Fed Minutes, ETF Outflows, Tariff Uncertainty Weigh On Bitcoin
Meanwhile, Gadi Chait, head of investment at Xapo Bank, said Bitcoin’s pullback was not unusual.
“Short-term swings like this are expected; they’ve long been a feature of the asset,” he said. This one likely came from hawkish Fed minutes, ETF outflows, and uncertainty around tariffs and geopolitics, he added.
For Ethereum, however, the weekend’s breakout marks an important milestone. With its price near $5,000 and corporate treasuries expanding, the token has reasserted itself as the driver of crypto momentum.
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