Fed Pivot Ignites Crypto Rally: Ethereum Outpaces Bitcoin as Whales Shift Positions

Risk assets roar back as Fed signals shift—Ethereum leads the charge while Bitcoin plays catch-up.

Whale Movements Signal Confidence

Major holders rotate into ETH positions, betting on stronger upside potential than Bitcoin's sluggish momentum. The smart money isn't just talking—it's moving.

Technical Breakout in Progress

ETH's chart structure shows cleaner breakout patterns than BTC's messy consolidation. When whales vote with their wallets, retail typically follows—though as usual, a day late and a dollar short.

Macro Tailwinds Boost All Boats

Easy monetary policy creates rocket fuel for risk assets. Crypto remains the high-octane version—because why settle for 10% gains when you can lose 50% or double your money in a week? Traditional finance still can't decide if we're geniuses or gamblers, but the performance speaks for itself.

In brief

• Ethereum reaches a new historic high at 4,880 dollars, surpassing its previous 2021 record.
• This bullish move is supported by a global crypto market rally, stimulated by the Fed’s remarks on a possible rate cut.
• Figures from traditional finance are beginning to recognize Ethereum’s central role in tomorrow’s financial markets.
• The technological evolution of the network, notably through the Pectra update, fuels solid long-term outlooks.

A rally fueled by markets and Fed signals

This Friday, August 22, Ether (ETH) briefly reached 4,880 dollars, marking a new historic record, surpassing for the first time since November 2021 its previous ATH threshold at $4,878.26.

This bullish move fits into a general dynamic of recovery in the crypto market, triggered by a major signal: remarks made by Jerome Powell, chairman of the US Federal Reserve.

He hinted that the Fed could soon start lowering interest rates, triggering renewed appetite for risk assets. Thus, the overall crypto market recovered, and the price of ETH ROSE over 15 % in just the single day of Friday. Since the beginning of the year, Ether has recorded an increase exceeding +40 %, outperforming Bitcoin’s performance.

However, beyond the macroeconomic context, several structural elements linked to capital flows also contributed to pushing Ether to new highs :

• Approval of spot Ethereum ETFs by the SEC in July 2024, facilitating direct market access for institutional investors ;

• Assets now exceeding 20 billion dollars, with BlackRock ETHA leading the most capitalized products.

This rise in traditional capital marks a turning point in the institutional perception of Ethereum. For Nate Geraci, president of NovaDius Wealth Management, this dynamic is explained by a change in perspective : “I feel like spot ETH ETFs were largely underestimated simply because traditional finance investors didn’t really understand Ethereum”, he wrote on social network X.

Feel like spot eth ETFs were severely underestimated simply b/c tradfi investors didn’t understand eth…

Btc had nice clean narrative, “digital gold”.

Eth takes more time for investors to understand.

Now they’re hearing “backbone of future financial markets” & it’s resonating.

Additionally, he adds : “Now, they’re hearing that ethereum is presented as the backbone of future financial markets, and this narrative is starting to resonate”. It is a late awakening, but now well established in portfolios.

These factors helped reposition Ethereum not simply as a performing altcoin, but as a central asset in the digital financial ecosystem undergoing reconfiguration.

A technology infrastructure evolving and a long-term vision

If the market ignited for Ethereum, it is also because the blockchain is experiencing a DEEP technological evolution. The Pectra update, deployed in May 2025, although perceived as neutral in terms of immediate price impact, contributed to restoring confidence.

“The Pectra update did not contain any element theoretically favorable to the price of ETH,” recalls Luke Nolan, senior analyst at CoinShares.

However, sentiment was so negative at the time that even a minor improvement was enough to reverse the trend. This update improved staking efficiency, optimized user experience, facilitated validator management, and strengthened the scalability of LAYER 2s — major advances for a network designed to handle billions of crypto transactions.

Furthermore, it is mostly the perception of Ethereum as the foundation of a new economic architecture that fuels long-term interest. Joe Lubin, founder of Consensys, explains that “Ethereum has the ability to secure and verify all transactions, whether initiated by humans or AI agents”. He also specifies that “most future transactions will fall into the latter category”.

Similar views come from Paul Brody, blockchain director at EY, who sees Ethereum as “the fundamental plumbing not only of finance but of all future commerce”. These perspectives, once relegated to the ecosystem’s margins, now resonate increasingly with major financial players.

This rise triggers multiple implications. Strategically, Ethereum seems to step out of Bitcoin’s shadow by asserting a complementary positioning, more technological than monetary. Macroeconomically, the network could become a coordination vector for decentralized, even automated, financial and commercial systems.

At the market level, this new legitimacy could strengthen the current trend of institutional accumulation, notably through corporate treasuries, as evidenced by BitMine, the largest ETH holder among listed companies. If this dynamic confirms, the symbolic threshold of 5,000 dollars might only be a step towards a new phase of structural growth.

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