Dovish Powell sends Ethereum to fresh all-time high; what's next for ETH?

Ethereum (ETH) hits record high: Dovish remarks from US Federal Reserve Chair Jerome Powell sparked a sharp rally in Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalisation, lifting it to a fresh high of $4,953. At the Jackson Hole Symposium on Friday, Powell signalled a potential near-term interest rate cut, contingent on upcoming jobs and inflation data.

 

The surge was further fuelled by strong inflows into US spot Ethereum ETFs and strategic buying by corporate treasuries.

 

The rally, analysts said, highlights Ethereum’s growing appeal amid changing market dynamics, reflecting renewed investor confidence and a possible shift in capital flows within the broader crypto market. 

 

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Ethereum’s rally, Gracy Chen, CEO of Bitget, said, signals robust ecosystem demand and the potential onset of an altcoin season. A key catalyst has been Federal Reserve Chair Jerome Powell’s unexpectedly dovish comments, which boosted risk-on appetite across markets. On-chain data shows capital rotation underway, with whales selling Bitcoin to increase Ethereum exposure, further accelerating ETH’s momentum.

 

"This macro easing, combined with sustained ETF inflows and Ethereum’s growing utility, suggests ETH is positioned to outperform in the near term. While Bitcoin remains supported by institutional demand, Ethereum’s fundamentals and ETF prospects give it an edge in leading the next leg of the market rally," Chen said.

 

Riya Sehgal, research analyst at Delta Exchange, also attributed the rally to multiple factors, including optimistic signals from Powell, inflows into US spot Ethereum ETFs, and accumulation of ETH by corporate treasuries.

What's next for Ethereum (ETH)?

Ethereum, however, has seen some profit booking at higher levels and slipped below the $4,700 mark. At last check, ETH was trading around $4,643.14, down 2.63 per cent, with a 24-hour trading volume of $56 billion, according to CoinMarketCap.

 

Over the past 24 hours, ETH fluctuated between $4,618.89 and $4,953.73. Its market capitalisation stood at $560.56 billion, confirming its position as the world’s second-largest cryptocurrency.

 

While short-term momentum has cooled and ETH is currently testing support around $4,680–$4,700, Sehgal believes the broader trend points to continued strength, with $5,000 within reach before year-end. Chen expects Ethereum to target $5,200 as it looks stronger on the charts.

Bitcoin continues to consolidate

Meanwhile, Bitcoin (BTC) saw its gains fizzle quickly, highlighting short-term consolidation challenges. At last check, Bitcoin was quoted at $111,920, down 2.5 per cent, with a 24-hour trading volume of $76.88 billion. BTC’s market capitalisation was recorded at $2.22 trillion, cementing its position as the largest cryptocurrency by market cap.

 

Notably, Bitcoin is nearly 10 per cent shy of its all-time high of $124,457, reached on August 14, nearly 11 days ago.

 

From a technical analysis perspective, analysts expect Bitcoin to trade in the $110,000–$120,000 range over the next two weeks.

 

Meanwhile, Bitcoin dominance has declined from 61 per cent to 57.9 per cent. The decline, Sehgal said, reflects a rotation of capital into Ethereum and other altcoins, signaling broader market diversification and growing institutional embrace of ETH.

Altcoins trade lower

Among other popular cryptocurrencies, Dogecoin (DOGE) was down 4.5 per cent, Cardano (ADA) fell 3.05 per cent, Ripple (XRP) dropped 2.59 per cent, Solana (SOL) lost 2.44 per cent, and Binance Coin (BNB) declined nearly 1 per cent, according to CoinMarketCap. However, Hyperliquid (HYPE) saw a gain of 1.79 per cent.

 

Meanwhile, the US dollar-pegged stablecoin Tether (USDT) remained flat at $0.99.