Ethereum Climbs to All-Time High Following Powell’s Rate Cut Signals

Ethereum (ETH) surged to a new all-time high of $4,885 on Coinbase Friday, rallying nearly 15% in the past 24 hours as investor sentiment turned bullish after Federal Reserve Chair Jerome Powell signaled a potential interest rate cut in September.

The move outpaced broader market gains, with bitcoin (BTC) rising around 4% and the CoinDesk 20 Index — a benchmark for the wider crypto market — climbing 9% during the same period.

Powell’s speech at Jackson Hole appeared to revive optimism that monetary easing is on the horizon, after recent uncertainty had dampened expectations earlier in the week. The market response was immediate, with equities and digital assets alike advancing sharply into the weekend.

Ethereum’s rally, however, is being driven by more than just macro tailwinds. Renewed institutional interest in the Ethereum ecosystem has been building throughout the year, with several firms — including Peter Thiel-backed ETHZilla — adding ether to their balance sheets as part of their treasury strategies.

Many analysts believe Ethereum is positioning itself as the preferred blockchain infrastructure for traditional finance, thanks to its robust smart contract capabilities and growing adoption across DeFi and enterprise use cases.

Year-to-date, ether has significantly outperformed bitcoin, gaining roughly 45% versus bitcoin’s 25% rise. The upside momentum has also spilled over to Ethereum-linked assets like Lido (LDO) and Ethena (ENA), both of which saw strong gains on Friday.