Ethereum reaches new all time high, surpassing its previous 2021 record. The surge followed comments from Federal Reserve Chair Jerome Powell that hinted at possible rate cuts, sending investors back toward risk assets like crypto.

Powell’s Remarks Spark Market Rally

The price of ether jumped late Friday during Powell’s annual speech at the Jackson Hole Economic Symposium. He stated that current conditions “may warrant” an adjustment to policy, which investors interpreted as a signal that interest rate cuts could arrive as soon as September.

Ethereum climbed 15% at its peak, reaching $4,885 and crossing the prior record of $4,866 set in November 2021. Bitcoin also moved higher, rising above $117,000, while broader equity markets rallied, with the Dow Jones Industrial Average gaining more than 850 points.

Liquidations and Market Impact

Powell’s comments triggered sharp moves across leveraged markets. In a single hour, around $120 million worth of ether short positions were liquidated, according to CoinGlass. Across the wider crypto market, liquidations exceeded $585 million. When short positions are forced to close, they can fuel further price gains, amplifying momentum.

Shares of crypto-related companies also reacted strongly. Firms focused on ether accumulation and blockchain services bounced back after earlier losses, while exchange stocks like Coinbase advanced about 6% on the day.

Onchain Activity and Investor Confidence

Beyond macro signals, Ethereum’s own fundamentals have strengthened. Network activity has surged 63% over the past month, with active addresses climbing 26%, according to Nansen data. Futures markets also reflect growing interest, with open interest standing at roughly $69 billion.

Analysts note that Ethereum’s premium in the futures market has returned to levels consistent with bullish sentiment. The combination of higher onchain activity and sustained leveraged demand suggests confidence in the network’s outlook.

Comparison With Other Networks

While Ethereum has only just reclaimed its record, other blockchains have already surpassed their previous highs. BNB and Tron trade above their 2021 peaks, while Solana has seen smaller gains in network activity. Still, Ethereum remains central to the stablecoin market, which accounts for nearly half of all blockchain fees and is mostly built on its infrastructure.

This role has positioned Ethereum as a critical part of ongoing institutional adoption. Regulatory developments such as the GENIUS Act and Project Crypto have further highlighted Ethereum’s importance in broader financial markets.

Outlook for Ethereum

With ether now above $4,800, analysts are weighing the possibility of a move toward $5,000. Futures positioning, onchain strength, and a more favorable macroeconomic backdrop point to continued interest. However, some traders remain cautious, noting that Ethereum has lagged behind competitors in fully breaking past its prior ceiling.

Market participants agree that lower interest rates would support demand for risk assets, but the timing and scale of any policy change remain uncertain. Powell did not explicitly confirm a September cut, leaving room for adjustment depending on economic conditions.

Moving Ahead

Ethereum reaches new all time high, closing a gap of nearly four years since its last record. The surge was driven by a mix of Powell’s dovish comments, renewed investor appetite for risk, and stronger activity on the Ethereum network. While attention now turns to whether $5,000 is within reach, the broader takeaway is clear: Ethereum’s role at the center of the digital asset economy remains as strong as ever.