Ether rebounded toward its recent highs as Federal Reserve Chair Jerome Powell signaled potential rate cuts, lifting risk appetite in crypto markets. The second-largest cryptocurrency was last up about 12% at 4,738.91 dollars, with ether hovering near its 2021 all-time peak of 4,866.01 dollars after dipping to roughly the 4,000 level earlier in the week.
The advance came as Powell’s remarks during his Jackson Hole address suggested a shift toward a more accommodative stance may be on the horizon. “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” Powell said. The remarks fed a wave of optimism among traders who had grown cautious in recent sessions.
Traders appeared to have been caught off guard by Powell’s dovish tone, said Jordi Alexander, chief executive at Selini Capital. “The market positioning in recent sessions has seen clear risk-off moves in assets like crypto and tech, and today’s setup for a September rate cut is prompting a panicked repositioning, which could continue through the illiquid weekend as shorts get squeezed,” he added. Another analyst noted that momentum is returning as policy and the Fed appear aligned on easing.
Around Powell’s address, ether faced about 120 million dollars in short liquidations in a single hour, according to CoinGlass. When traders use leverage to short ether and the price climbs, they buy back ETH to close positions, amplifying the move higher and triggering further liquidations.
Stocks tied to ether also recovered, with Bitmine Immersion up about 14% and SharpLink Gaming rising roughly 12%. Ether-focused firm ETHzilla, backed by Peter Thiel, had a volatile session, sliding more than 38% at one point after offering up to 74.8 million of its shares for resale; it was down about 30% as Powell’s remarks rolled out. Solana-focused DeFi Development jumped about 19%, Coinbase climbed around 6%, Circle gained roughly 7%, and Strategy added about 5%.
In the fund market, ether exchange-traded funds drew 287.6 million dollars in inflows on Thursday, snapping a four-day streak of outflows. Despite the bounce, ETFs across the ether space were on track for their first weekly net outflow since May 9, tallying about 578.9 million dollars for the week—the largest weekly outflow on record in some measures. Bitcoin ETFs also posted a fifth straight session of outflows on Thursday, with the weekly total reaching about 1.15 billion dollars, setting the stage for their biggest weekly net loss since late February.
What to watch next: the trajectory of Powell’s policy guidance and any follow-through on rate cuts will be crucial for risk-on assets, including ether. Traders will also be assessing liquidity conditions into the weekend, ETF flows in the coming days, and macro indicators that could influence further moves in crypto markets.
Summary: Ether staged a notable rebound after Powell’s Jackson Hole remarks suggested possible rate cuts, lifting prices toward multi-month highs amid renewed risk appetite. Trading activity in related equities and ETFs reflected renewed interest, even as weekly outflows in crypto ETFs and bitcoin ETFs signaled ongoing volatility. The coming days will be key to see whether the rally sustains or faces renewed pressure as markets digest evolving policy signals. Positive momentum could support a continued risk-on environment for ether and other crypto assets.