The global crypto market surged this week following Federal Reserve Chair Jerome Powell’s remarks at the annual Jackson Hole symposium. Powell suggested that rate cuts may be imminent, citing growing risks in the U.S. labor market and sluggish economic conditions. While traditional markets celebrated with record-breaking gains in the Dow, the crypto sector also saw sharp price movements — raising speculation about whether Ethereum (ETH) could retest its all-time high (ETH ATH) in the coming months.
Powell’s Speech Shifts Market Sentiment
In his highly anticipated address, Powell acknowledged “downside risks to employment” and hinted that the Fed may cut rates as early as September. Investors immediately priced in nearly a 90% probability of a cut, sending both stocks and crypto into rally mode. Bitcoin rebounded above $65,000, while Ethereum climbed closer to the $3,000 threshold.
Crypto traders interpreted Powell’s dovish tone as a green light for risk assets. Lower borrowing costs tend to encourage liquidity inflows, historically benefiting digital assets. Analysts believe that if monetary easing continues, Ethereum could be positioned to revisit ETH ATH levels near $4,800.
ETH ATH Hopes Reignite
Ethereum has been under pressure throughout 2025, trading well below its November 2021 peak. However, the recent policy shift from the Fed has reenergized sentiment around smart contract platforms. The expectation of lower interest rates often drives institutional capital back into volatile assets like crypto.
“Ethereum remains undervalued compared to its utility,” said a senior crypto strategist at a leading exchange. “With Powell signaling potential cuts, the narrative for Ethereum revisiting its ETH ATH has become much stronger.”
This optimism is also fueled by Ethereum’s robust staking economy, which continues to lock up supply, reducing sell-side pressure. Coupled with rising demand for decentralized finance (DeFi) and tokenized assets, the fundamentals align with technical momentum toward an ETH ATH breakout.
Bitcoin Leads, Ethereum Follows
Bitcoin remains the anchor of the crypto market, but Ethereum’s unique role in powering decentralized applications places it at the center of investor interest. As BTC moves higher on macro-driven optimism, ETH often follows with amplified gains. This correlation suggests that a potential Bitcoin rally toward new highs could set the stage for Ethereum’s journey back to ETH ATH territory.
Wider Crypto Implications
Beyond Ethereum, other altcoins also benefited from Powell’s Jackson Hole remarks. Solana (SOL), Cardano (ADA), and Avalanche (AVAX) all posted double-digit weekly gains. Investors appear to be repositioning portfolios to capture upside in a lower-rate environment.
However, Powell also warned about tariffs pushing prices higher, introducing uncertainty. Persistent inflation could force the Fed to pause or reverse course, which may trigger volatility across all asset classes, including crypto.
Analyst Outlook: ETH ATH Within Reach?
Market analysts are divided on the exact timeline for Ethereum’s potential new peak. Some forecast that ETH could reclaim ETH ATH levels by early 2026 if rate cuts proceed steadily. Others caution that regulatory hurdles, particularly in the U.S., could slow adoption and cap upside momentum.
Still, the broader consensus leans bullish. With Ethereum 2.0 upgrades improving scalability and institutional adoption of blockchain-based applications growing, many investors believe the foundation is set for ETH’s long-term rally.
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