Ethereum News Today: Jerome Powell Signals Fed Flexibility Spurring Crypto Rally Ethereum Up 7%

Jerome Powell’s recent comments at Jackson Hole signaled a potential shift in the Federal Reserve’s policy stance, sparking a significant rally in the cryptocurrency market. Investors quickly priced in the possibility of a September rate cut, with sentiment surging from 69% to 89% within a short window. The reaction was immediate and tangible—Ethereum (ETH) broke through critical resistance levels, and Cardano (ADA) confirmed a bullish trend, as the overall crypto market cap surged past $4.07 trillion [1].

The Fed chair emphasized flexibility in responding to shifting economic conditions, noting that rising tariffs and immigration policies were already influencing employment and price pressures. Powell clarified that temporary price increases would not necessarily trigger persistent inflation, providing reassurance to markets that aggressive rate hikes were unlikely in the near term [1]. Traders interpreted this as a green light for risk assets, triggering a rapid rebound in major cryptocurrencies.

Ethereum’s breakout was particularly notable, as the ETH/BTC pair moved above an 8-year resistance level for the first time since 2017. Within 24 hours, Ethereum climbed to $4,837, nearing its 2021 all-time high of $4,878. The ETH/BTC ratio rose by 7%, reflecting growing investor confidence in Ethereum’s outperformance relative to Bitcoin [3]. Analysts highlighted that a sustained move above this level could turn the former resistance into a support base, reinforcing the bullish technical setup [3].

Cardano, while not as volatile as Ethereum, showed consistent gains and confirmed a positive price trajectory. The altcoin’s momentum was attributed to broader market optimism, as well as factors like regulatory clarity and network integration [4]. Despite Bitcoin’s recent correction, Cardano positioned itself as a key beneficiary of the expanding bull market.

The broader market context was further amplified by political and historical signals. With five consecutive Fed meetings ending with no rate changes, and the White House urging action amid slowing economic growth, Powell’s remarks were seen as a pivotal moment. Investors began adjusting their strategies accordingly, factoring in the potential for continued rate easing and its favorable impact on risk assets [1].

Technical analysts identified key patterns that supported the ongoing rally. A bull flag formation on Ethereum’s 4-hour USD chart pointed to potential price targets between $5,400 and $5,477, suggesting a continuation of the upward trend [3]. If confirmed, this could push Ethereum beyond its historical peak.

In summary, Powell’s dovish comments ignited a market response that extended across major cryptocurrencies. The interplay of policy signals, technical formations, and investor sentiment created a favorable environment for Ethereum and Cardano, marking the beginning of what analysts describe as a new business cycle in the crypto market [1].

Source:

[1]title1.............................(https://www.fxstreet.com/cryptocurrencies/news/ethereum-reclaims-all-time-highs-as-jackson-hole-sparks-risk-on-surge-202508260519)

[2]title2.............................(https://www.coindesk.com/daybook-us/2025/08/25/here-is-why-bitcoin-s-flash-crash-may-signal-altcoin-season-crypto-daybook-americas)

[3]title3.............................(https://yellow.com/news/ethereum-surges-past-8-year-bitcoin-resistance-as-fed-rate-cut-signals-boost-market)

[4]title4.............................(https://www.ainvest.com/news/cardano-strategic-momentum-regulatory-clarity-network-integration-position-ada-gigachad-bull-run-2508/)