Ether gains 10% after Fed’s Jackson Hole, ETF holdings top 6.4M ETH

Record spot ETF inflows this summer drove custodial Ether holdings to 6.42 million, marking the strongest accumulation phase since ETFs launched in January 2024. Over $5.43 billion flowed into ETFs in July alone, followed by another $2.45 billion in August, according to CryptoQuant data. These inflows have removed a substantial portion of circulating supply, intensifying on-chain demand dynamics.

Following Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole symposium hinting at rate cuts, Ether surged 10% in minutes, moving from $4,220 to $4,650. The rally broke short-term resistance and formed a bullish inverse head-and-shoulders pattern on the hourly chart, signaling a potential shift in trend structure. Four-hour volume spiked by 150% as liquidation cascades triggered fresh entries from both retail and institutional participants.

On-chain analysis revealed that whale addresses holding over 1 000 ETH increased their positions by 80 000 ETH during the rally, indicating renewed confidence in Ether’s upside. At the same time, lending protocols saw a net outflow of 120 000 ETH, reflecting capital rotation into long positions. Decentralized finance metrics showed that total value locked (TVL) in Ethereum-based protocols reached $140 billion, up 4% on the week.

Looking ahead, key technical levels to watch include $4,800 and $5,100, where historical sell-side liquidity clusters reside. The CME FedWatch Tool currently assigns an 88% probability to a September rate cut, which could further fuel risk-asset inflows. A sustained close above $4,800 may open targets near $5,500 and beyond, aligning with on-chain supply-demand imbalances and macro expectations.