Ether notches first new record since 2021 after Powell speech teasing rate cuts
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The price of ether surged to a new all-time high on Friday after Federal Reserve Chair Jerome Powell hinted at upcoming rate cuts and investors regained confidence.
The second-largest cryptocurrency jumped 15% late Friday, reaching a peak of $4,885.00 and surpassing its previous record set in November 2021 at $4,866.01.
Bitcoin also saw a 4% increase, reaching $117,008.29.
Ether (ETH) bounces after Powell’s Jackson Hole speech
The surge in prices coincided with Powell’s annual address from Jackson Hole, Wyoming. Powell stated, “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
Jordi Alexander, CEO at crypto trading firm Selini Capital, commented, “Traders seem to have been caught completely off-sides by Powell’s dovish comments today. The market positioning in recent sessions has seen clear risk-off moves in assets like crypto and tech, and today’s setting up of a September rate cut is causing a panicked repositioning, which could continue through the illiquid weekend as shorts get squeezed.”
“Momentum is back on the menu with the administration and the Fed seemingly aligned on easing,” he added.
Around the time of the speech, ETH saw about $120 million in short liquidations in a one-hour period, according to CoinGlass.
Shares of companies focused on accumulating ether bounced with the coin on Friday. Bitmine Immersion and SharpLink Gaming saw increases of 12% and 15%, respectively.
Shares of ETHzilla tumbled more than 31% at one point Friday after the ether treasury company offered up to 74.8 million of its shares for resale.
DeFi Development surged 21%, while Coinbase and Strategy advanced 6% each.
Ether has emerged as a leader in the crypto market, driven by regulatory tailwinds and institutional interest around stablecoins.
Fundstrat’s Tom Lee stated, “Ether is the biggest macro trade over the next 10 to 15 years,” emphasizing the growth potential of the cryptocurrency.
CNBC’s Nick Wells contributed reporting
