Ethereum Shatters All-Time High as Powell’s Rate Cut Signal Ignites Crypto Rally

Jerome Powell just handed crypto bulls exactly what they wanted—and Ethereum sprinted to unprecedented heights.

The Fed's dovish pivot sends risk assets soaring

Powell’s signal that rate cuts loom sparked an instant rally across digital assets. Ethereum led the charge, bulldozing through previous resistance levels like they weren’t even there. Traders piled in, futures volumes exploded, and within hours, ETH wasn’t just up—it was making history.

Why Ethereum becomes the headline act

Smart money flowed straight into the ecosystem’s backbone. Defi protocols saw deposits spike, NFT markets buzzed, and gas fees? They jumped too—because when Ethereum moves, the whole machine revs up. This wasn’t just a pump; it was a validation.

Of course, Wall Street analysts quickly reframed the rally as 'a logical response to macro conditions'—because nothing says 'foresight' like slapping a narrative on a move that already happened.

So Powell tilts dovish, and crypto eats it up. Again. Will traditional finance ever learn? Probably not—but your portfolio doesn’t care.

Ethereum has just smashed through its old record, setting a new all-time high above $4,878. This breaks the level last seen in November 2021.

The timing couldn’t have been better. The surge came right after Federal Reserve Chair Jerome Powell confirmed at Jackson Hole that a rate cut is coming in September.

So far in 2025, ETH is already up more than 40%. It’s outpacing Bitcoin and setting the tone for what traders are calling the start of altseason.

Powell Speech Words Push Markets Higher

The excitement comes down to what Powell really signaled. Heading into his speech, markets had priced a 71% chance of a cut in September. But when Powell acknowledged that U.S. job numbers had been revised down for three months and said inflation and unemployment risks were now “balanced,” the odds jumped to nearly 90%. For investors, that was Fed-speak for: cuts are coming. 

Bitcoin quickly bounced from $113K to $117K, while the ethereum price ripped straight to its new all-time high. Other altcoins like Solana, XRP, and Cardano followed suit.

September Rate Cut Likely, but Don’t Expect a Flood

VirtualBacon, a well-followed crypto analyst, explained that Powell’s message was a turning point. Just in July, Powell stressed that inflation was the bigger threat. Now, by softening his stance and admitting risks are shifting, the Fed is opening the door to looser monetary policy. However, he cautioned that Powell also shut down the idea of rapid, aggressive cuts. 

The Fed is moving away from its old “flexible” policy that tolerated overshooting inflation and is instead returning to a strict 2% target. That means September looks locked in, but investors shouldn’t expect a flood of cuts.

Liquidity Boost May Spark Altseason

For ethereum and the wider crypto market, even a single cut may be enough. As the analyst noted, just one move by the Fed, combined with the possibility of pausing balance sheet tightening, could provide liquidity to fuel a multi-month bull run. He pointed out that the charts are already screaming altseason. ETH has overtaken Bitcoin in momentum, BTC dominance is trending down, and large-cap altcoins like SOL, XRP, and ADA are climbing steadily against BTC.

Echoing a similar sentiment, Nate Geraci from NovaDius Wealth explained that while Bitcoin has always had a simple “digital gold” story, Ethereum took longer for mainstream investors to grasp. Now, with narratives around Ethereum powering financial systems and future technologies, interest is catching fire.

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Ethereum Price Could Push Past $5,000

Moving on analyst shared that he’s leaning heavily into altcoins right now, keeping only 20% of his portfolio in Bitcoin while allocating the remaining 80% to ETH and other large-cap alts, including Solana, XRP, Cardano, BNB, and Dogecoin. His Trading Bots have already locked in profits on ETH, SOL, LINK, and XLM, while still targeting further gains on ADA. 

Looking ahead, he expects Ethereum could stretch past $5,000, but warns that consolidation is common after new highs. Instead of chasing, he’s waiting for dips around $4,000 to reload, emphasizing that patience is key in a fast-moving bull market.

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FAQs

ETH jumped after Powell signaled a September Fed rate cut, boosting market optimism.

Solana, XRP, Cardano, BNB, and Dogecoin are also rising during this altseason.

Analysts expect ETH to stay bullish, with potential to trade between $4,500 and $5,200.