Ethereum News Today: Ethereum's Surge Signals a New Era as Wall Street Embraces Crypto

Ethereum (ETH) surged to a new all-time high of $4,885 on Friday, surpassing its previous record set in November 2021, as investors responded to Federal Reserve Chair Jerome Powell’s indication that rate cuts may come as early as September [1]. The move came amid a broader market shift toward risk-on assets, with ether rising nearly 15% in 24 hours and outpacing bitcoin, which gained approximately 4% during the same period [2]. The surge was largely fueled by Powell’s speech in Jackson Hole, Wyoming, where he noted that the labor market's weakening fundamentals could warrant a policy adjustment [3].

Powell’s comments, which emphasized the need to address rising downside risks to employment, triggered a significant repositioning in financial markets [1]. Traders had already been pricing in a high probability of a rate cut before the speech, but the Fed chair’s remarks solidified those expectations, leading to sharp rebounds in both stocks and crypto. In a short span following the speech, ether saw approximately $120 million in short liquidations, as leveraged bearish positions were forced to unwind [4]. This dynamic pushed the price of ether higher and created a self-reinforcing upward trend.

Ethereum’s performance this year has been underpinned by growing institutional interest and a shift in market sentiment toward the platform. The Ethereum network has become a focal point for stablecoins, which now account for 40% of all blockchain fees and more than half of which are processed by Ethereum. Institutional adoption, particularly in treasury strategies, has further strengthened the token’s appeal [2]. Companies like ETHZilla, backed by billionaire Peter Thiel, have also played a role in accumulating ether, contributing to increased demand for the token.

The market reaction to Powell’s comments was not limited to Ethereum. Broader financial markets also responded positively, with the Dow Jones Industrial Average surging nearly 900 points in the first hour of trading after the speech [1]. Treasury yields fell as investors flocked to bonds to lock in higher rates ahead of the anticipated rate cut. The U.S. dollar also weakened against other major currencies, reflecting concerns about slowing economic growth [5]. These developments underscore the interconnectedness of global financial markets and the influential role of central bank policy in shaping asset prices.

Ethereum’s rally also highlighted the growing convergence between traditional finance and the crypto sector. Analysts have noted that Ethereum’s infrastructure is increasingly being viewed as Wall Street’s preferred blockchain for innovation and investment. With regulatory developments like the GENIUS Act and Project Crypto from the U.S. Securities and Exchange Commission, the institutional adoption of Ethereum has gained momentum [4]. This trend positions ether as a key macroeconomic trade for the next decade, particularly as stablecoins continue to gain traction.

Traders and analysts continue to monitor how the Fed’s policy adjustments will play out over the coming months. While Powell’s speech did not confirm an immediate rate cut, it provided enough signal for markets to price in a high probability of one in September. This uncertainty has created a volatile but dynamic environment for asset prices, particularly for those sensitive to interest rate changes. Ethereum’s strong performance is a reflection of this environment, where macroeconomic optimism and regulatory tailwinds have combined to drive investor sentiment.

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[1] Fed's Powell signals possible rate cut — and stocks soar (https://www.npr.org/2025/08/22/nx-s1-5509941/jerome-powell-federal-reserve-interest-rates-jackson-hole)

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

[3] Powell suggests rate cuts are coming — but not because ... (https://www.cnn.com/business/live-news/fed-powell-jackson-hole)

[4] Ethereum (ETH) Surges to New All-Time High Amid Likely ... (https://www.coindesk.com/markets/2025/08/22/ethereum-surges-to-new-all-time-high-amid-likely-september-rate-cut)