Ethereum (ETH) recorded a sharp price increase of 9% over the past 24 hours, rallying in tandem with broader risk assets after Federal Reserve Chair Jerome Powell’s Jackson Hole remarks suggested rate cuts may arrive sooner than expected.
According to CoinMarketCap, Ethereum is trading at $4,652, up nearly 29% over the past month, showing renewed strength after weeks of volatility. The token’s 24-hour trading volume climbed to $51.5 billion, marking a 23.4% daily increase, as investors rotated capital back into digital assets following Powell’s comments.
Ethereum’s market capitalization now stands at $560.3 billion, reinforcing its position as the second-largest cryptocurrency after Bitcoin.
Powell speech triggers broad rally
On Friday, Powell acknowledged that 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.
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.
