Ethereum News Today: Ethereum Surpasses $4,800 on Fed Rate-Cut Hopes and ETF Inflows

Ethereum surged past its previous all-time high, reaching as high as $4,885 on August 22, 2025—its first new peak in four years [1]. The rally was driven by comments from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Symposium, where he signaled the potential for rate cuts in September [2]. Following the remarks, Ether climbed more than 15% in a single day, while Bitcoin also rose approximately 4%, pushing toward $117,000 [2]. The broader crypto market capitalized hit $4.1 trillion, echoing optimism in traditional financial markets, with the S&P 500 gaining 1.5% [2].

The market shift was fueled by evolving expectations around monetary policy. Before Powell’s speech, traders had already priced in a 72% probability of a September rate cut, a figure that climbed to 85% after his comments [2]. This renewed appetite for riskier assets led to a sharp rise in Ethereum’s price, which moved in close alignment with macroeconomic developments. For instance, a 2.7% increase in July inflation data triggered a prior crypto rally, but a later 0.9% rise in the producer price index had briefly stalled the momentum [2].

Institutional demand also contributed to the surge. Ether’s spot ETFs recorded inflows of approximately $2.79 billion, and daily trading volume jumped by 147% to $81.18 billion, as reported by CoinCentral [4]. Meanwhile, about $388 million in ETH positions were liquidated following the price spike [4]. High-leverage traders also took advantage of the bullish trend; for example, James Wynn opened a 25x long position in Ether, generating over $14,000 in gains [5].

Analysts have offered mixed views. BitMEX founder Arthur Hayes has forecasted Ethereum could reach as high as $20,000, though this projection remains speculative and has not yet been reflected in market data [3]. As of August 23, Ethereum was trading near $4,700 after previously surpassing $4,800 [6]. With the combination of macroeconomic signals and increased institutional participation, market participants are closely monitoring both crypto and Federal Reserve policy for further developments [7].

Sources:

[1] CNBC, https://www.cnbc.com/2025/08/22/crypto-market-today.html

[2] Fortune, https://fortune.com/crypto/2025/08/22/ethereum-price-today-bitcoin-jerome-powell-fed-chair-jackson-hole/

[3] Yahoo Finance, https://finance.yahoo.com/news/why-arthur-hayes-expects-ethereum-210103605.html

[4] CoinCentral, https://coincentral.com/ethereum-price-hits-new-all-time-high-above-4880-amid-crypto-market-rally/

[5] CoinCentral, https://coincentral.com/james-wynn-places-25x-ether-long-as-eth-hits-fresh-highs-above-4860/

[6] CoinDesk, https://www.coindesk.com/markets/2025/08/23/ether-likely-to-top-usd5k-btc-eyes-record-high-as-powell-sparks-rally-watch-for-dat-deal-risks-asset-managers

[7] AInvest, https://www.ainvest.com/news/ethereum-news-today-ethereum-surge-driven-fed-signals-institutional-bet-2508-64/