Key takeaways:
ETH jumped 13% on Friday after Federal Reserve Chair Jerome Powell’s dovish remarks at Jackson Hole suggested a possible interest rate reduction in September.
Onchain and technical indicators indicate that Ether could reach $6,000 in the near term.
Ether’s (ETH) price showed resilience at the Wall Street open on Friday, climbing 13% to $4,788 following Jerome Powell’s Jackson Hole address.
ETH quickly rose from $4,200, regaining $4,600, a level that had capped the price for the past week, according to data from Cointelegraph Markets Pro and TradingView.
This positive movement follows Powell’s remarks, hinting at a potential interest rate cut in September, which has fostered market optimism.
The odds of an interest rate cut for the Sept. 17 FOMC meeting have risen to 91.5% from 75% just a day earlier, according to the CME Group Fedwatch tool.
This contributes to a positive bullish sentiment that could propel ETH to new highs.
ETH surpassed $4,600 with a “god candle,” noted analyst Elisa, adding:
Multiple bullish indicators suggest that ETH is primed for a breakout towards new all-time highs in the coming days or weeks.
Continued spot ETF inflows bolster ETH price growth
One key factor advocating for Ether’s bullish outlook is sustained institutional interest, showcased by notable inflows into spot Ethereum exchange-traded funds (ETFs).
Spot Ether ETFs experienced $287.6 million in inflows on Aug. 21, ending a four-day outflow streak. These investment vehicles have amassed net inflows of $2.55 billion month-to-date, according to data from Farside Investors.
As reported by Cointelegraph, Ether maintained dominance in global exchange-traded products (ETPs) last week, attracting inflows of $2.9 billion, reflecting an increasing investor interest in altcoin ETPs.
Related: EU investigating Ethereum, Solana for digital euro rollout: FT
Exchange supply diminishes
ETH balances on exchanges have plummeted to nine-year lows, dipping to 14.9 million ETH for the first time since July 2016, according to Glassnode data.
The balance between inflows and outflows across all known exchange wallets has sharply declined since October 2023, following a surge in withdrawals from trading platforms. This trend correlates with a 180% increase in Ether’s price over the same timeframe.
A declining Ether supply on exchanges may indicate an impending price rally driven by a “supply shortage,” which occurs when robust buyer demand coincides with a diminishing available ETH, as noted by crypto investor Crypto Virtuos.
“The amount of $ETH on centralized exchanges has fallen to its lowest point in 9 years,” Crypto Virtuos highlighted in a Monday post on X.
This suggests that more individuals are opting to hold and stake ETH long-term, leaving less ETH available for sale.
“Potential for a supply shortage ahead. Is ETH poised for its next significant move?”
Bull flag breakout places ETH price target above $6,000
From a technical standpoint, Ether’s price behavior has confirmed a bull flag pattern on the daily chart.
The bull flag pattern was confirmed when the price surpassed the upper trendline at $4,300. ETH could potentially rise by as much as the height of the previous uptrend. This positions the upper target for the altcoin at $6,150 — representing a 43% increase from the current price.
Moreover, the daily relative strength index indicates a positive reading of 66. This signifies that market conditions remain favorable for further upside, enhancing Ether’s likelihood of achieving its bull flag target.
Notable trader Merlijn The Trader has set a more ambitious target for Ether, stating that breaking free from a four-year downtrend along with a bullish MACD cross on the monthly chart positions ETH for a rally towards $10,000.
THE $ETH BREAKOUT EVERYONE AWAITED.
Ethereum just broke a 4-year downtrend.
Monthly MACD golden cross → confirmed.This is not noise.
This is liftoff.Next stop: $10,000 Ethereum pic.twitter.com/Mm83ZMvCAh
— Merlijn The Trader (@MerlijnTrader) August 19, 2025
Other analysts are also optimistic that Ether could hit $10,000 and beyond by 2025, attributing this to robust institutional demand through spot Ethereum ETFs and a continued strong interest from ETH treasury companies, indicating a positive market sentiment.
This article does not constitute investment advice or recommendations. All investments and trading activities carry risks, and readers should perform their own due diligence before making decisions.
