Ethereum recorded one of its strongest trading days on record, soaring 14% within 24 hours to reach $4,840.
The rally added $65 billion to its market capitalization, lifting the total value of ETH in circulation to $581.75 billion. Analysts noted this surge marks the second-largest single-day price increase in the asset’s history.
The move now places ETH around 2% away from its all-time high of $4,891, set in November 2021, putting renewed attention on whether a breakout to new records could happen in the coming weeks.
Powell’s Speech Ignites Market Frenzy
The spark came from Federal Reserve Chair Jerome Powell, who used his Jackson Hole address to signal that a September interest rate cut is firmly on the table. While avoiding an outright pledge, Powell acknowledged that the U.S. labor market is softening, a risk that could outweigh persistent inflationary concerns.
Investor sentiment flipped almost instantly. Prior to Powell’s remarks, traders had priced in a 70% likelihood of a quarter-point rate cut at the Fed’s next meeting. That probability shot up to 89% afterward, according to market trackers.
Risk-On Sentiment Fuels Crypto Rally
The surge in rate-cut expectations unleashed a broad shift into risk assets, with cryptocurrencies among the biggest beneficiaries. Ethereum led the charge, though Bitcoin and other major tokens also experienced notable gains. Market strategists pointed out that lower interest rates reduce the appeal of safe-haven assets and bonds, encouraging capital to flow into high-growth, volatile markets such as crypto.
If momentum continues, Ethereum could test and possibly surpass its historic peak — a development that traders see as a critical signal heading into the final stretch of the year.
At the time of writing, ETH is trading arund $4,780 after a slight pullback.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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