Ethereum has updated its historical high from 2021

Ethereum ETH $4,366.65 Bridged Ether (StarkGate) -9.07% Market capitalization $0.11 billion VOL. 24 hours $4.6 billion has set a new all-time high of $ 4,954.81 due to signals from US Federal Reserve Chairman Jerome Powell about a possible rate cut. After a sharp rise on Friday, August 22, amid his speech in Jackson Hole, the second-largest cryptocurrency by capitalization managed to consolidate its position and rise to peak values over the weekend. At the time of publication, the asset was trading at $ 4,588, down 3.45% on the day.

The sharp pullback was driven by liquidations worth $ 210 million among leveraged traders. This resulted in chain effect sales and a drop in the price below the psychologically important level of $ 4,800. Nevertheless, the overall dynamics of ETH demonstrates strong demand, supported by the Fed’s change in rhetoric.

Bitcoin BTC $112,510.00 Mezo Wrapped BTC -2.60% Market capitalization $40.91 million VOL. 24 hours $2.8 billion came under even more pressure at this time. It dropped by 2.19% over the day and traded at $ 112,502, showing a weekly drop of 2.74%. The price of BTC dropped to $ 110,779, the lowest since July 10. The situation was aggravated by massive sales of miners: they sold 5,066 BTC worth about $ 569 million, which destroyed the key support at $ 118,859.

Analysts note that Ethereum’s reaction was particularly telling: the token grew by almost 7% immediately after Powell’s statements, reaching $ 4,600 in a few minutes. The growth is facilitated by a structural shortage of coins, as about a third of the ETH supply is blocked in staking, as well as growing demand from corporate treasuries. Over the weekend, Bitmine Immersion Technologies, led by Wall Street strategist Tom Lee, acquired Ethereum for $ 45 million.

Despite the local pullback, both leading cryptocurrencies remain well above the levels recorded before the Fed chairman’s statement. Market participants are awaiting new macroeconomic data and the Fed’s decision at its September 18 meeting to assess the future course of monetary policy.