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Ether reclaims record as markets pivot on Powell remarks
Ether surged past its November 2021 peak after Federal Reserve Chair Jerome Powell signaled a potential easing of policy, sending crypto markets back into risk-on mode. The second-largest cryptocurrency jumped roughly 15% late Friday, climbing to as high as $4,885.00 and eclipsing the previous record of $4,866.01 from November 2021.
Powell speech triggers rapid repositioning
Powell's annual address from Jackson Hole, Wyoming, changed market expectations by suggesting the Fed could begin cutting rates if the economic outlook and risks shift. Traders interpreted the comments as dovish, prompting a fast-paced reallocation toward higher-risk assets such as ETH and large-cap technology stocks. Industry strategists said the tone set the stage for a September rate cut in market pricing, accelerating a wave of buybacks and squeeze dynamics across leveraged positions.
Short liquidations and technical squeeze
Data from CoinGlass showed about $120 million in short liquidations on ether in a single hour near the time of the speech. When leveraged short traders cover their positions as prices rise, their buy orders can push the asset higher and force additional liquidations, creating a feedback loop that amplifies upward moves in volatile assets like ETH.
Public companies tied to ether react to the rally
Stocks of firms that accumulate ether rebounded after a difficult week of profit-taking in tech. Bitmine Immersion and SharpLink Gaming rose about 12% and 15%, respectively, on Friday. Bitmine had recorded its first weekly decline in three weeks prior to the bounce. Meanwhile, ETHzilla, an ether treasury company backed by Peter Thiel, experienced extreme volatility after announcing a share resale offering of up to 74.8 million shares; shares plunged more than 31% intraday and finished the session down about 31.4%.
Other market participants with heavy exposure to altcoins also saw gains. Solana-focused treasury firm DeFi Development jumped roughly 21%, while exchange-related and bitcoin proxy names such as Coinbase and Strategy rose about 6% each as risk appetite returned to markets.
Why ether is leading the crypto market now
Ether's recent outperformance reflects a convergence of macro and regulatory developments. Regulatory clarity and institutional interest, especially around stablecoins and tokenized dollar rails, have driven demand for Ethereum infrastructure. Stablecoins generate a significant share of blockchain transaction fees, and much of that activity is settled on Ethereum, boosting ETH utility and long-term narrative for the asset.
Institutional flows and long-term thesis
Market analysts highlight that stablecoin adoption and institutional product development are key drivers that could make ether one of the largest macro trades over the coming decade. As Wall Street firms and regulated products expand onto public blockchains, Ethereum stands to benefit from increased transaction volume, fees, and treasury demand from organizations that hold ETH as a reserve asset.
Investors should weigh the short-term volatility that accompanies macro shifts, such as Fed rate expectations, against longer-term fundamentals tied to network usage, DeFi growth, and stablecoin settlement. For traders and institutions alike, the recent move underscores how macro policy and crypto market structure can combine to produce sharp, rapid price action in digital assets.
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