Ethereum Nears All-Time High Amid Fed Rate Cut Signals, $259M Shorts Liquidated

Ethereum has surged to its highest level since November 2021, nearing an all-time high of around $4,878, driven largely by Federal Reserve Chair Jerome Powell's dovish signals at the Jackson Hole symposium indicating a potential interest rate cut in September. This announcement sparked a strong rally in risky assets, with Ethereum rising over 250% since its April lows and attracting significant inflows into US-based Ether ETFs and corporate treasury purchases totaling billions of dollars. Despite this momentum, Ethereum fell just short of breaking its all-time peak, triggering substantial liquidations of short positions worth over $259 million and total ETH liquidations exceeding $340 million in 24 hours. Analysts have raised price targets for Ethereum, with some projecting values as high as $7,500 by year-end and up to $13,000 in the coming months, reflecting growing confidence in Ethereum as a utility-rich reserve asset rather than purely speculative. The broader cryptocurrency market also benefited from Powell's remarks, with Bitcoin and total crypto market capitalization rising alongside Ethereum. However, some caution remains due to macroeconomic uncertainties and risks of stagflation, despite the optimistic investor sentiment currently driving the rally.