Ethereum reached a new all-time high of $4,957.67 and is currently trading around $4,937.01. The recent rally erased over $57 million in crypto positions in just one hour, mostly impacting short sellers, as traders scrambled to cover leveraged bets.
Why Ethereum Surged
The rally started after Federal Reserve Chair Jerome Powell’s Jackson Hole speech. Powell hinted that interest rates could be cut next month, saying:
“With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
This comment triggered a short squeeze, where traders betting against Ethereum were forced to buy back ETH quickly, pushing the price even higher.
Real Example: CoinGlass data shows around $120 million in Ethereum short positions liquidated in just one hour, as leveraged shorts collapsed under the sudden upward move.
How the Market Reacted
-
Bitmine Immersion: Jumped 12% after Ethereum surged.
-
SharpLink Gaming: Rose 15% alongside ETH.
-
ETHzilla (Peter Thiel-backed): Plunged 31% during Friday’s session due to a large share resale.
-
DeFi Development (Solana-linked): Spiked 21%.
-
Coinbase and Strategy: Increased 6%, showing broader crypto gains.
Ethereum clearly led the market, while some related assets experienced extreme volatility.
What’s Driving Ethereum Momentum
Over the past eight weeks, institutional interest has fueled Ethereum’s momentum. Stablecoins now account for 40% of all blockchain fees, and more than half of these run on Ethereum.
Pro Insight: This growing role of Ethereum in the financial system has drawn big investors, reinforcing its long-term growth potential.
Tom Lee, Fundstrat’s head, explained on CNBC:
“Ether is the biggest macro trade over the next 10 to 15 years, largely because stablecoins have become the ChatGPT moment for crypto.”
(FAQs)
Q: What is Ethereum’s latest all-time high?
Ethereum recently hit $4,957.67, trading around $4,937.01.
Q: Why did Ethereum rally so fast?
Jerome Powell’s Jackson Hole speech sparked a short squeeze, forcing leveraged traders to buy ETH quickly.
Q: Which companies benefited from Ethereum’s surge?
Bitmine Immersion, SharpLink Gaming, and several DeFi projects saw strong gains.
Ethereum continues to dominate the crypto market. The combination of institutional demand, stablecoin growth, and macro-level catalysts like the Fed’s policy hints makes ETH a focal point for both short-term traders and long-term investors.
Key takeaway: While volatility remains high, Ethereum’s role in the broader financial ecosystem is expanding, making it a strong contender for sustained growth.