Ether is on the cusp of breaching the $5,000 mark as cryptocurrency markets responded enthusiastically to Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole symposium. The asset recorded a gain of nearly 10 percent within 24 hours, propelling its price to around $4,700 on major exchanges and prompting renewed inflows into Ether-based exchange-traded funds. On Aug. 21, these regulated products collectively attracted $287.6 million in fresh capital, underscoring the growing institutional embrace of Ether as both a yield-bearing and speculative instrument.
Monarq Asset Management analysts reaffirmed their bullish outlook, predicting that Ether’s momentum, supported by expectations of rate cuts in the coming months, would drive the token above $5,000 in the near term. They highlighted constructive market internals, favorable technical setups, and the continued migration of corporate balance sheets toward digital assets as key drivers of sustained demand. Complementary on-chain data point to rising staking deposits and expanding developer activity, further reinforcing the token’s fundamental underpinnings.
Bitcoin also benefited from Powell’s comments, with its price hovering near $115,900 despite a slight pullback from intraday highs. Strategic analysts anticipate that Bitcoin’s uptrend remains intact, forecasting potential new all-time peaks before year-end as macroeconomic conditions evolve. Option market sentiment for both Bitcoin and Ether reflects a growing premium on calls, indicating that traders are positioning for further upside.
However, market watchers caution that potential headwinds could temper the rally. Early signs of deal-quality deterioration in corporate treasury cryptocurrency transactions, driven by a flood of announcements and varying levels of counterparties’ compliance readiness, may introduce volatility. Additionally, equity market fluctuations and geopolitical developments, including trade policy uncertainties, could influence the trajectory of digital assets. Thus, while the near-term outlook remains bullish, participants recommend close monitoring of macro flows and corporate treasury adoption trends to gauge the sustainability of this rally.
Overall, Ether’s ascent toward $5,000 represents a significant milestone in the token’s maturation process and highlights the crypto sector’s heightened sensitivity to monetary policy signals. As investors recalibrate their expectations, the coming days will offer critical insights into whether this bullish phase can extend beyond the weekend into a broader multi-week uptrend.
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