-
Powell’s Jackson Hole comments lift Ethereum to near 2021 peak with 9.7% gain daily.
-
Trading volume has increased 127% to $80.59B indicating strong investor activity.
-
Ethereum is nearing $5K resistance, as supply, stake, and burn mechanisms shape the tokenomics.
Ethereum’s price soared Friday after Federal Reserve Chairman Jerome Powell indicated that the central bank may consider rate cuts as soon as September.
The comments made at the annual Jackson Hole Symposium sparked a rally in crypto markets, pushing Ethereum to its all-time high of 2021.
Powell flips the script on rate cuts
Powell told the audience, “the shifting balance may warrant adjusting policy stance,” which immediately changed market sentiment.
His comments were a sharp contrast to the anxiety that had been building earlier in the week. Investors had briefly pulled back following the Bureau of Labor Statistics’ report of a 0.9% rise in the producer price indicator, fueling fears that rate cuts could be delayed.
Related Ethereum Leads a Market Wide Rally After Powell’s “Dovish Jackson Hole Speech
After his speech, CME’s FedWatch tool showed that the probability of a cut in September had risen to 85% from 72% before he spoke.
Ethereum Price and Volume Surge
According to CoinMarketCap, Ethereum was up 9.7% as of the time this article was written, reaching $4,716.13 at the time. Binance data showed that the token was climbing above $4 814, within reach of its record high of $4 878 in November 2021.
The rally boosted Ethereum’s market cap to $569.27 Billion, consolidating its second-largest position in the cryptocurrency world. Trading activity increased as well, with the 24-hour volume increasing to $80.59billion, a 127% rise from the previous session. The volume-to market cap ratio was 14.15 percent, which indicates a strong turnover in relation to valuation.
Supply and Market Dynamics
The total supply of Ethereum is 120.7 million ETH. Ethereum’s tokenomics, while not capped as Bitcoin is, are shaped by the staking mechanism and the burn mechanism introduced in EIP-1559.
Analysts noted the rally was in line with increasing institutional inflows, and growing activity across decentralized solutions and Layer 2 solutions. Ethereum started the day trading at $4,327, before moving lower in the afternoon. The token crossed the $4,600 mark and continued to rise, stabilizing at just under $4800 by midday.
This site is for entertainment only. Click here to read more
