Ethereum Price Hits New All Time High as Fed Signals Possible Rate Cut

The Ethereum price surged 10% in the last 24 hours to trade at $4706 on a 139% pump in the daily trading volume to $80.2 billion.

Ethereum Price Surges on Fed Cut Hints and Record ETF Inflows

The rally came as Federal Reserve Chair Jerome Powell hints at a possible interest rate cut in September, boosting demand for risk assets like crypto. ETH has now gained over 250% since April’s low of $1,385.

His softer stance points to easier financial conditions, which often boost demand for risk assets like Ethereum. Ethereum is also gaining momentum from ETF inflows and corporate adoption.

Ether ETF inflows resume

On Aug. 21, Ethereum ETFs saw $287.6M inflows after four days of outflows, pushing their total assets to $12.12B. At the same time, companies like BitMine, SharpLink, and Bit Digital bought about $1.6B in ETH, raising corporate holdings to $29.75B.

Analysts now view ETH as more than just speculative — it’s becoming a reserve asset. Standard Chartered raised its ETH target to $7,500 by year-end and $25,000 by 2028, with some predicting it could hit $13,000 soon.

Bitcoin’s market dominance has dropped below 60%, showing money is moving into altcoins. ETH funds also attracted $2.86B in a week, far ahead of Bitcoin’s $552M, highlighting growing investor confidence in Ethereum.

Ethereum Price Faces Pullback After Strong Rally

Ethereum (ETH) has been on a strong rally this month, climbing above $4,800 before pulling back to around $4,700 on August 23. The price is down about 2.7% in the last 24 hours, but the overall trend still looks bullish.

The recent surge came after ETH broke out of a long bearish channel earlier this year. After weeks of moving sideways between $3,000 and $3,500, Ethereum finally gained momentum and started setting higher highs. This shows growing strength in the market.

The move was fueled by renewed investor confidence, strong institutional inflows into Ethereum-based ETFs, and optimism around broader crypto adoption.

The RSI (Relative Strength Index) is at 63, which means ETH is not yet overbought but could see short-term corrections before moving higher.

Right now, support is holding near $3,500, while the immediate resistance level is projected around $5,500. If momentum continues, Ethereum could test this resistance zone in the coming weeks.

On the downside, failure to hold above $4,500 could invite selling pressure, potentially dragging the price back toward $4,000.

Ethereum’s path forward looks promising, with $5,500 as the next major resistance level to watch. While short-term volatility is likely, the overall trend suggests ETH could continue its upward march, especially if macroeconomic conditions remain favorable and ETF inflows persist.. Traders should watch $4,500 as a key level to avoid a deeper pullback.