Ethereum Surpasses 2021 All-Time High Following a Remarkable 15% Surge

Ethereum (ETH) experienced an impressive surge of over 15% in the last 24 hours, eclipsing its previous all-time high of $4,869.47 set in 2021 on August 22.

At the time of reporting, the second-largest cryptocurrency was trading at around $4,888 and continuing to rise.

The price jump was influenced by Federal Reserve Chair Jerome Powell’s suggestion of possible interest rate cuts during the Jackson Hole symposium. Following Powell’s remarks in Wyoming, the cryptocurrency market surged by more than 4% within the hour, reclaiming the $4 trillion mark.

Powell mentioned that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” igniting speculation around potential rate cuts in September.

Odds on Polymarket for a possible 25 basis point cut in September jumped from 57% to 79% within hours after Powell’s address.

Analysts at UBS remarked that Powell’s dovish statements signify “the framing and justification of a shift in policy bias,” indicating a move from prioritizing inflation to focusing on employment issues.

Market-Wide Rally

Bitcoin surged over 4% in the past 24 hours, reaching approximately $117,000 at the time of reporting.

Leading altcoins mirrored Bitcoin and Ethereum’s performance, with BNB achieving a new all-time high of $900 after rising more than 7%, while XRP, Solana, and Dogecoin saw double-digit percentage increases.

Traditional markets reflected the performance of cryptocurrencies, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all increasing by around 2%.

The US dollar weakened against gold and other significant assets as investors anticipated a more accommodative monetary policy.

Recovering from Multi-Year Lows

Ethereum’s surge signifies a considerable rebound from its multi-year low of $1,385.41 hit in April 2025, marking its lowest price point since March 2023.

The rally proved challenging for leveraged traders, with Coinglass data indicating over $553 million in liquidations within the past 24 hours.

Short sellers faced the most significant losses, contributing to $308 million in liquidations, while long positions saw a reduction of about $325 million. Ethereum led liquidation volumes with $251 million lost, followed by Bitcoin at $102 million.

The Fed’s potential September rate cut could further enhance liquidity, potentially sustaining the current momentum in cryptocurrencies as they remain closely linked to US monetary policy decisions.

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