Key takeaways:
ETH jumped 13% on Friday following Federal Reserve Chair Jerome Powell’s dovish Jackson Hole speech, which suggested a potential interest rate cut in September.
Onchain and technical indicators indicate Ether could reach $6,000 in the near term.
Ether’s (ETH) price showed resilience at the Wall Street open on Friday, soaring 13% to $4,788 after Federal Reserve Chair Jerome Powell’s address at Jackson Hole.
ETH price surged from $4,200 in mere minutes, reclaiming the $4,600 mark, a level that had capped the price over the previous week, according to data from Cointelegraph Markets Pro and TradingView.
This uptick followed Powell’s address, where he indicated a possible interest rate cut in September, fostering market optimism.
Odds for an interest rate cut at the Sept. 17 FOMC meeting soared to 91.5%, up from 75% the previous day, per the CME Group Fedwatch tool.
This amplifies the positive sentiment that may push ETH to new peaks.
ETH breached $4,600 with a “god candle,” noted analyst Elisa, adding:
Several bullish indicators suggest that ETH is positioned to potentially reach new all-time highs in the coming days or weeks.
Continuous spot ETF inflows support ETH price growth
One contributing factor to Ether’s bullish narrative is the ongoing institutional demand, evidenced by significant inflows into spot Ethereum exchange-traded funds (ETFs).
Spot Ether ETFs recorded $287.6 million in inflows on Aug. 21, ending a four-day outflow streak. These products have accumulated net inflows of $2.55 billion so far this month, according to data from Farside Investors.
As Cointelegraph reported, Ether continued to dominate global exchange-traded products (ETPs) last week, raking in a total of $2.9 billion in inflows, highlighting the increasing investor enthusiasm for altcoin ETPs.
Related: EU exploring Ethereum, Solana for digital euro launch: FT
Exchange supply declines significantly
ETH balances on exchanges have plummeted to nine-year lows, now standing at 14.9 million ETH for the first time since July 2016, as indicated by Glassnode data.
The balance between inflows and outflows in exchange wallets has illustrated a steep decline since October 2023, coinciding with a surge in withdrawals from trading platforms. This trend accompanies a 180% increase in Ether’s price over the same duration.
Decreasing Ether supply on exchanges may indicate a forthcoming price increase driven by a “supply shortage,” arising when robust buyer demand encounters dwindling available ETH, according to crypto investor Crypto Virtuos.
“The amount of $ETH held on centralized exchanges has hit a nine-year low,” Crypto Virtuos stated in a recent post on X.
This suggests a growing number of participants are opting to hold and stake ETH for the long term, resulting in reduced ETH availability for sale.
“Possibility of a supply shortage approaching. Is ETH primed for its next significant move?”
Bull flag breakout places ETH price target over $6,000
Analyzing from a technical standpoint, Ether’s price movement has confirmed a bull flag pattern on the daily chart.
The bull flag was confirmed when the price broke above the upper trendline at $4,300. ETH could rise as much as the prior uptrend’s height, positioning the upper target for the altcoin at $6,150 — a 43% increase from its current value.
Additionally, the daily relative strength index is favorable at 66, indicating that market conditions still lean toward upward movement, enhancing Ether’s likelihood of achieving its bull flag target.
Well-known trader Merlijn The Trader has set a more ambitious target for Ether, suggesting that breaking out of a four-year downtrend combined with a bullish cross from the MACD on the monthly chart positions ETH for a rally toward $10,000.
THE $ETH BREAKOUT EVERYONE WAITED FOR.
Ethereum just shattered a 4-year downtrend.
Monthly MACD golden cross → confirmed.This isn’t noise.
This is liftoff.Next stop: $10,000 Ethereum pic.twitter.com/Mm83ZMvCAh
— Merlijn The Trader (@MerlijnTrader) August 19, 2025
Other analysts share predictions that Ether may reach $10,000 and beyond in 2025, citing strong institutional demand through spot Ethereum ETFs and ETH treasury companies, reinforcing a bullish market outlook.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
