Ethereum Soars to Record High on Rate Cut Optimism, Outshines Broader Crypto Market
Ethereum (ETH) surged to a new all-time high of $4,885 on Coinbase Friday, rallying nearly 15% in 24 hours, as Federal Reserve Chair Jerome Powell’s comments revived hopes for a September interest rate cut.
The rally came amid widespread gains in financial markets, but Ethereum significantly outperformed its peers. Bitcoin (BTC) rose about 4%, while the CoinDesk 20 Index, tracking the broader crypto landscape, climbed 9%.
Powell’s speech at the Jackson Hole symposium delivered a dovish tone, suggesting the Fed remains open to easing monetary policy if economic conditions warrant it. Markets, which had grown uncertain about a cut, reacted swiftly and positively to the shift in sentiment.
Ethereum’s rise wasn’t solely driven by macroeconomic developments. The token has also seen growing institutional demand, with firms including ETHZilla—backed by billionaire Peter Thiel—adding ETH to their treasuries. Some analysts view Ethereum as the preferred blockchain for traditional finance integration, enhancing long-term demand for its native asset.
Year to date, ETH is up approximately 45%, well ahead of Bitcoin’s 25% gain. The rally has also buoyed related staking tokens like Lido (LDO) and Ethena (ENA), both of which benefited from Ethereum’s strength.
As rate cut expectations firm up ahead of the Fed’s September meeting, Ethereum continues to demonstrate leadership in the digital asset space, propelled by both macro tailwinds and a compelling institutional narrative.
