Ethereum Shatters $4,650 Barrier as Powell’s Fed Pivot Ignites Crypto Frenzy
Jerome Powell just handed crypto bulls the match—and Ethereum's running with it straight past $4,650.
Fed Tone Shift Sparks Rally
Powell’s hint at a policy reversal sent traditional and digital markets roaring. Ethereum didn’t just climb—it launched, capitalizing on renewed institutional confidence and liquidating skeptics on the way up.
Market Responds With Force
Traders piled in, options volume exploded, and the ETH/BTC pair strengthened. The move reflects broader optimism—or maybe just relief that the Fed’s finally blinking after years of playing inflation whack-a-mole.
Where It Goes From Here
Momentum’s strong, but sustainability depends on macro follow-through. For now, crypto enjoys the rare combo of dovish central banks and bullish technicals. Just don’t ask the SEC how they feel about it.
Another day, another Fed-fueled rally—because who needs fundamentals when you’ve got forward guidance?
Powell speech triggers broad rally
On Friday, Powellthat U.S. monetary policy is already in restrictive territory, signaling the Federal Reserve could soon begin to ease interest rates. Traders immediately priced in a 91% probability of a September rate cut, according to the CME FedWatch tool.
That shift ignited a rally across equities and digital assets, with Ethereum benefiting alongside Bitcoin. Risk-on sentiment saw U.S. stocks surge, led by a 732-point jump in the Dow Jones, and cryptocurrencies followed with strong inflows.
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Ethereum outlook
Ethereum’s strong rebound reflects both macro tailwinds and growing network resilience. With over 120.7 million ETH in circulation and increasing on-chain activity, the asset appears well-positioned to benefit from looser monetary conditions.
Analysts note that rate cuts typically boost liquidity, making crypto assets like Ethereum more attractive to institutional investors seeking higher-yield alternatives to traditional markets.
Still, volatility remains a risk. Despite Friday’s sharp gains, Ethereum must hold above the $4,500 support zone to maintain bullish momentum. A sustained break higher could reopen the path toward its previous 2025 highs above $4,750.
