Ethereum (ETH) Price Prediction: Ethereum Nears $4,868 ATH as Fed Policy Sparks 12% Rally—Is $5,000 Within Reach?

Ethereum’s bullish momentum is back in full swing, with ETH closing in on its all-time high after a sharp Fed-fueled rally reignited market optimism.

Ethereum price today is nearing a historic milestone, briefly touching $4,800 on August 22, 2025, according to Brave New Coin data. The surge came after dovish remarks from U.S. Federal Reserve Chair Jerome Powell, which sparked a nearly 12% rally in ETH within hours. Outpacing most altcoins, Ethereum’s rebound has renewed speculation over whether the second-largest cryptocurrency is finally poised to break the $5,000 barrier.

“Shifting balance of risks may warrant adjusting policy stance,” Powell said at the Jackson Hole Economic Symposium, signaling that the Fed could move toward a rate cut as early as September. Investors quickly rotated into risk assets, with Ethereum leading the surge.

Market Overview: ETH Technical Analysis Signals Resistance Near ATH

Ethereum’s current rally puts it less than 1% away from its all-time high of $4,868, set in 2021. TradingView data shows ETH facing immediate resistance between $4,800 and $4,340, while the $4,000 zone continues to act as a strong demand base.

Ethereum (ETH) is trading less than 1% below its all-time high of around $4,868, based on the 2021–2025 price chart. Source: Bull Theory via X

Technical analysts point to mixed signals. “Ethereum is right at the threshold of a breakout,” wrote analyst BullTheoryio on X, noting that historical resistance at the ATH could either cap gains or trigger a parabolic move. With the Relative Strength Index (RSI) still below extreme levels, ETH may have further upside before signs of overheating appear.

Fundamental Catalysts: Fed Policy and Global Events

Ethereum’s rally also reflects shifting macroeconomic tides. Powell’s dovish stance contrasts with the hawkish tone of the Federal Open Market Committee’s July minutes, which showed reluctance to cut rates due to inflation risks. Market expectations for a September rate cut now sit near 90%, according to CME’s FedWatch tool—fueling investor appetite for high-growth assets like Ethereum.

Federal Reserve Chair Jerome Powell signaled at the Jackson Hole symposium on August 22, 2025, that the FOMC may soon consider interest rate cuts. Source: JackTheRippler via X

Global events also add context. The April 2025 announcement of sweeping U.S. tariffs, dubbed “Trump’s tariffs of opportunity,” initially triggered a 4% crypto market dip. Yet, as DLNews reported, such policies ultimately bolstered liquidity flows into digital assets. Analysts suggest Ethereum’s resilience in the face of macro shocks strengthens its long-term outlook.

Expert Views on Ethereum’s Next Move

Despite the bullish momentum, caution remains as Ethereum approaches its all-time high. Its proximity to $4,868 represents a psychological barrier, with the potential to reach $5,000 if the level is convincingly broken, though a failure to do so could trigger a pullback toward the $4,000 demand zone.

Ethereum is on track for a new all-time high this week, showing a strong bullish reversal from early-session losses. Source: MasterAnanda on TradingView

Optimism persists among investors, as Ethereum’s staking yields, Layer 2 expansion, and the potential for an ETF approval are seen as catalysts that could allow ETH to outpace Bitcoin in the next growth cycle, given its more diverse ecosystem.

Looking Ahead: Ethereum Prediction and Long-Term Outlook

Ethereum news today reflects a market at a crossroads. The combination of Fed policy shifts, strong Layer 2 adoption, and near-record price levels creates both opportunity and risk. While short-term volatility around resistance levels is likely, the medium-term Ethereum price prediction remains bullish if macro conditions stay supportive.

Ethereum (ETH) was trading at around $4,809, up 12.84% in the last 24 hours at press time. Source: Ethereum Liquid Index (ELX) via Brave New Coin

Whether Ethereum breaks through $5,000 in the coming weeks may depend as much on the Fed’s September decision as on ETH’s technical resilience. For investors, the next chapter in Ethereum’s story could define its role in the evolving balance between traditional finance and decentralized networks.