TLDR
- Ethereum price jumped 12% to $4,885 after Powell’s Jackson Hole comments.
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Daily ETH trading volume rose 147% to $81.18 billion post-speech.
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$388 million in ETH positions were liquidated after the surge.
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Spot Ether ETFs saw $2.79B in August inflows, outpacing Bitcoin ETFs.
Ethereum price surged to a record high of $4,885, following comments from Federal Reserve Chair Jerome Powell. The rally followed Powell’s Jackson Hole speech where he emphasized supporting the labor market, prompting markets to expect a September interest rate cut. According to the CME FedWatch Tool, rate cut expectations have risen to 90%.
This shift in monetary policy sentiment led to a strong rally across the crypto market. Bitcoin rose 4% to $113,000 while Ethereum price led the gains with a 12% jump, outperforming other altcoins including Solana (SOL), Dogecoin (DOGE), and XRP.
Ethereum Volume Spikes and Open Interest Rise Sharply
Following the price surge, Ethereum’s daily trading volume rose by 147% to $81.18 billion. Simultaneously, open interest jumped by $3 billion, indicating a strong increase in leveraged positions. Data from CryptoQuant shows that ETH open interest is now nearing that of Bitcoin, reflecting growing investor attention.
This rapid increase in activity also led to $388 million in ETH liquidations within 24 hours, the highest among all cryptocurrencies during the period. Over 183,000 traders were affected, with the largest single loss totaling $10 million on OKX.
“Ether’s new all-time high is a clear sign of investor demand beyond just bitcoin,” said Samir Kerbage, CIO at Hashdex.
Institutional Demand and ETF Inflows Drive Momentum
Institutional activity has remained strong, with treasury firms such as BitMine Technologies and SharpLink Gaming increasing ETH holdings. Blockchain intelligence firm Arkham reported BitMine’s latest ETH purchase was valued at $45 million, raising its total ETH holdings to $7 billion.
Ethereum-focused ETFs also experienced large inflows. Data from Farside shows that spot Ether ETFs received $2.79 billion in net inflows in August.
In contrast, Bitcoin ETFs saw net outflows of approximately $1.2 billion in the same period. Analysts from NovaDius Wealth Management noted a “notable shift” in ETF inflows between ETH and BTC.
XRP, Solana Join in the Upside Momentum
XRP also participated in the rally, buoyed by renewed market optimism and strong risk appetite. According to analysts like Casitrades and Dark Defender, XRP’s technical structure indicates the potential for higher moves if current levels hold. The pair noted XRP’s breakout above recent resistance and highlighted increased trader activity.
Solana, Dogecoin, and other altcoins have also posted gains, as capital rotated out of Bitcoin and into broader crypto assets. Over the last 30 days, Bitcoin’s dominance has declined by nearly 6%, now standing at 58.19%, according to CoinMarketCap.
Despite the bullish momentum, historical trends suggest Ethereum often underperforms in September. CoinGlass data shows that in past cycles, August gains were followed by losses averaging 6.42% in September. In 2017, ETH surged 92.86% in August but dropped 21.65% the following month.
However, market participants note that current conditions are different, with the presence of Ether ETFs and increased institutional adoption, which were not present in prior years.
At the time of writing, Ethereum is trading at $4,759, up nearly 25% since the start of August.
