Ethereum News Today: Ethereum's $4,885 Surge: A Fed Pivot Ignites a New Bull Run

Ethereum surged to a new record price in late August 2025, breaking through its 2021 high of $4,866.01 to reach $4,885.00. This move, driven by dovish comments from U.S. Federal Reserve Chair Jerome Powell during the annual Jackson Hole symposium, triggered a significant shift in investor sentiment toward risk-on assets. ETH rallied by 15% on the day of Powell’s speech, with a one-hour period witnessing $120 million in short liquidations, pushing the price even higher.

Powell’s remarks indicated the possibility of rate cuts in the near future, with his statement that "the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance" causing a market repositioning. Traders who had positioned themselves for a bearish market were forced to cover their short positions, resulting in a self-reinforcing price surge. Jordi Alexander, CEO of Selini Capital, noted that the market had been "caught completely off-sides" by the Fed’s pivot, which led to a "panicked repositioning" in crypto and tech assets.

The surge in Ethereum’s price was not only a result of macroeconomic factors but also bolstered by institutional flows. Spot Ethereum ETFs recorded over $1 billion in net inflows in the month leading up to the rally, with BlackRock’s ETHA fund accumulating more than 150,000 ETH. This influx of capital mirrored the earlier patterns seen in Bitcoin’s cycles and underscored Ethereum’s growing role as a digital reserve asset. Bitmine, a publicly traded company, became the first to confirm 1 million ETH in treasury, signaling a broader corporate strategy to allocate capital toward Ethereum.

Ethereum’s dominance over Bitcoin in the past two months has been attributed to favorable regulatory developments, particularly surrounding stablecoins. Stablecoins, which account for 40% of all blockchain fees and over half of which are powered by Ethereum, have become central to institutional interest in the crypto market. Tom Lee of Fundstrat highlighted that Ethereum is "the biggest macro trade over the next 10 to 15 years" due to its role in the growing stablecoin ecosystem.

Institutional adoption also extended to publicly traded companies. ETHZilla, an Ethereum treasury firm, announced a $10 billion acquisition plan, further cementing Ethereum’s status as a key financial asset. The company’s move signaled a broader shift in corporate treasury management, with Ethereum now seen as a critical component of institutional-grade digital asset portfolios.

Looking at technical indicators, Ethereum faced resistance near $4,880 and support at $4,180. A daily close above $4,450 would confirm a continuation toward $4,550 and potentially $4,880 again. The RSI remains elevated but not overbought, while the MACD trend remains bullish. On the downside, a break below $4,000 would invalidate the near-term bull case and risk a deeper correction toward $3,800.

For the long term, Standard Chartered raised its year-end ETH price target from $4,000 to $7,500, citing stronger corporate adoption and institutional inflows. CoinCodex projected ETH averaging $6,025 in September, with potential peaks above $7,200. Aggressive forecasts even suggest a target near $9,000 in November, representing a near 90% return for 2025. With ETF demand, DeFi revival, staking yields, and Layer 2 expansion absorbing congestion, Ethereum’s fundamentals are far stronger than in 2021.

Ethereum’s resurgence also sparked a broader altcoin rally. Trading volumes surged to $81 billion in 24 hours, with DeFi platforms like Uniswap (UNI) and Aave (AAVE) seeing double-digit volume growth. Lido DAO (LDO) spiked 14% after regulatory clarity on liquid staking receipts boosted demand. Coinbase Institutional projected a "full-scale Altcoin Season" beginning in September, with ETH at the center of the cycle.

As Ethereum solidifies its position as a leading digital asset, institutional investors, corporate treasuries, and DeFi participants continue to drive its value higher. With supportive macroeconomic policy, robust fundamentals, and increasing adoption across both on-chain and off-chain platforms, Ethereum remains a compelling asset for long-term investors.

Source:

[1] Ether notches first new record since 2021 after Powell (https://www.cnbc.com/2025/08/22/crypto-market-today.html)

[2] Ethereum Price Forecast: ETH-USD Bullish Momentum Builds ... (https://www.tradingnews.com/news/ethereum-price-forecast-eth-usd-bullish-momentum-build-toward-7500-usd)

[3] Ethereum's Price Explodes to a New All-Time High (https://cryptopotato.com/ethereums-price-explodes-to-a-new-all-time-high/)

[4] 12 Best Crypto Staking Platforms of 2025 (https://nftevening.com/best-crypto-staking-platforms/)