Ethereum Hits $4,957 After Fed Rate Cut Signal

- Ethereum spikes to $4,957 after Jerome Powell speech - Short squeezes fuel $120 million in crypto liquidations On August 24, 2025, Cryptopolitan reported that Ethereum hit an all-time high of $4,957 following comments from Federal Reserve Chair Jerome Powell. Speaking at the Jackson Hole economic symposium, Powell hinted at potential interest rate cuts. Investors interpreted this as a shift toward more accommodative monetary policy, which sparked a surge in risk-on sentiment, particularly within the cryptocurrency market. Bitcoin and other digital assets also experienced gains as investors moved into cryptocurrencies, which are often viewed as alternative or speculative investments in response to monetary easing. Ethereum’s meteoric rise triggered significant market activity, with over $57 million in liquidations occurring within the first hour of Powell’s speech, primarily impacting short positions. According to data from CoinGlass on August 24, traders closed roughly $120 million in Ethereum shorts during this period. As traders who bet against the asset scrambled to cover their positions, they created a cascading effect known as a "short squeeze" that added further fuel to the price rally. The sharp movement in Ethereum’s price created ripple effects across equity markets, especially for companies with exposure to blockchain technologies or Ethereum itself. Bitmine Immersion and SharpLink Gaming, firms known for holding Ethereum, saw their stock prices increase by 12% and 15%, respectively. Meanwhile, ETHzilla, a blockchain firm backed by Peter Thiel, faced a sharp 31% decline after announcing its intent to sell a considerable amount of shares. In addition, other blockchain-related equities registered gains. For example, DeFi Development, a company focused on Solana’s ecosystem, jumped 21%, while large cryptocurrency-focused institutions such as Coinbase and MicroStrategy reported 6% increases in their stock prices. The broader context of Ethereum’s rally is also tied to the growing institutional adoption of stablecoins, as many are built on Ethereum's blockchain. Tom Lee of Fundstrat emphasized Ethereum's pivotal role in this trend, describing it as the "biggest macro trade over the next 10 to 15 years" and likening the advent of stablecoins to the transformative "ChatGPT moment for crypto." As of 20:08 UTC on August 24, Ethereum (ETH) was trading at $4,751.31. At that time, its 24-hour trading volume had changed by 0.018%, its fully diluted market capitalization stood at $573.52 billion, and its market dominance was 14.60%.