Powell’s Rate-Cut Signal Sends Ethereum Surging Toward 2021 All-Time Highs
Jerome Powell just handed crypto bulls exactly what they wanted—and Ethereum's charging toward legendary price territory.
The Fed's dovish pivot sparks a fire
Powell’s hint at impending rate cuts sent shockwaves through traditional markets—but crypto’s reaction was downright explosive. Ethereum isn’t just riding the wave; it’s leading the charge back toward levels not seen since the 2021 mania.
Why ETH responds differently this time
Unlike past cycles where Bitcoin dominated the narrative, Ethereum’s ecosystem maturity gives it unique momentum. Defi protocols, institutional staking, and layer-2 scaling mean this isn’t just speculative fever—it’s infrastructure catching up to ambition.
The cynical take? Wall Street’s late as always
While traditional finance scrambles to decode Powell’s wording, crypto markets priced it in within minutes. Because nothing says 'efficient markets' like waiting for a central banker’s vague hint before adjusting your trillion-dollar portfolio.
Next stop: ATH territory—and beyond
With macro winds shifting, Ethereum’s push toward its 2021 peak feels less like a replay and more like a recalibration. The real question isn’t if it breaks records—but how long traditional investors will keep underestimating the chain that actually builds things.
Fed signals must meet Ethereum fundamentals
According to Marcin Kazmierczak, Co-founder of RedStone, a measured Fed easing cycle could be the final catalyst required for ETH to shatter the $4,800-$5,000 resistance barrier and chart a course toward new all-time highs. However, he cautions that Powell’s deliberately careful tone is a reminder that sustainable growth cannot rely on monetary policy speculation alone.
Kazmierczak argues that any lasting rally must be anchored by continued fundamental adoption, specifically pointing to robust institutional flows via spot ETFs and a resurgence in decentralized finance network activity. These fundamentals, rather than fleeting Fed sentiment, provide the necessary bedrock for a true breakout.
“The convergence of institutional flows, DeFi activity, and potential Fed accommodation creates a compelling setup for ETH to potentially reach the $5,000-$6,000 range that analysts have been targeting for 2025,” Kazmierczak said in a statement obtained by crypto.news.
This bullish technical and fundamental setup has encouraged strikingly optimistic predictions. Arthur Hayes, chief investment officer at Maelstrom, has projected that Ethereum’s momentum could propel it to a staggering $20,000 by the cycle’s end.
In a recent interview on crypto Banter, Hayes stated, “The chart says it’s going higher, you can’t fight the market. I think [Ethereum] goes to $10,000, $20,000, before the end of the cycle.” This audacious forecast, while speculative, captures the intensely optimistic sentiment building around Ethereum’s potential.
Public markets respond to ETH price surge
The ethereum price surge euphoria bled into public equity markets, offering a proxy for institutional Ethereum exposure. Companies with significant ether treasuries, which had been battered earlier in the week amid a tech sector sell-off, ripped higher in tandem with the coin’s price. Bitmine Immersion and SharpLink Gaming saw their shares jump 14% and 12%, respectively, according to CNBC data.
Still, the outlook remains layered. Ether-focused ETFs, which snapped a four-day streak of outflows with $287.6 million in inflows on Thursday, remain on pace for their worst week since May. That divergence highlights the tension between short-term speculation and long-term allocation, leaving open the question of how much institutional appetite will continue if the Fed’s policy path stays uncertain.
