Ethereum skyrocketed to a new all-time high of $4,868, its inaugural one in about three years, following Federal Reserve Chairman Jerome Powell’s dovish statements at the Jackson Hole symposium that augured well for a possible rate reduction. The leader altcoin has surged more than 100% since June, fueled by $9 billion in ETF inflows, corporate treasury purchases of almost 3 million ETH, and increased institutional buying. With increased regulatory clarity and positive technical signals, Ethereum is now targeting the $6,000 level, buoyed by sturdy momentum and investor sentiment.

KEY LOOKOUTS

• A breakout above $4,868 would confirm a bullish pennant, paving the way for a rally to $6,000.

• ETH needs to remain above $4,100 to stay in bullish bias; a fall below threatens declines towards $3,472.

• More than $9 billion ETF inflows and 3 million ETH treasury purchases continue to propel higher.

• SEC clarification on liquid staking and the GENIUS Act are bolstering Ethereum’s long-term adoption story.

Ethereum has entered into a strong bullish trend, crossing $4,868 for the first time since November 2021, driven by dovish hints from the Federal Reserve and record-breaking institutional inflows. As more than $9 billion has flowed in through spot ETFs and corporate treasuries have stockpiled millions of ETH, the second-largest cryptocurrency is experiencing unparalleled demand. Technical indicators also indicate that momentum is going to be sustained, with a bullish pennant developing and major support at $4,100 remaining intact. Should ETH continue on this trend, the next major target of $6,000 will soon be within reach.

Ethereum has risen to an all-time high of more than $4,868, fueled by Powell’s dovish comments and robust institutional inflows. With bullish technicals, corporate buying, and ETF demand, ETH eyes the $6,000 level now.

• Ethereum (ETH) reached a new all-time high of $4,868, its highest level since November 2021.

• Fed Chair Jerome Powell’s dovish comments at Jackson Hole created optimism about possible rate cuts.

• ETH has risen more than 100% since June, supported by robust institutional and corporate treasury appetite.

• More than $9 billion has entered US spot Ethereum ETFs since June, almost triple prior lifetime inflows.

• Corporate treasuries have bought almost 3 million ETH, topped by BitMine Immersion and SharpLink Gaming.

• Technicals point to bullish momentum, with a possible breakout to $6,000 if $4,868 resistance is breached.

• The major support of $4,100 needs to hold in order to continue the bullish momentum; otherwise, it could slide towards $3,472.

The incredible breakout by Ethereum to a new all-time high is a key milestone in the cryptocurrency space, signaling increased investor confidence and restored push for digital assets. The action was primarily driven by Federal Reserve Chairman Jerome Powell’s dovish comments during the Jackson Hole Economic Symposium, which implied a change in U.S. monetary policy. This optimism, coupled with overall market euphoria, has again put Ethereum under the limelight as the top altcoin, demonstrating its resilience and increasing importance in the global financial architecture.

ETHEREUM DAILY PRICE CHART

SOURCE: TradingView

Aside from market sentiment, Ethereum’s upsurge is being driven by institutional investment and corporate treasury stashing, reflective of a change in perceptions about digital assets among conventional players. U.S. spot Ethereum ETFs have drawn more than $9 billion in inflows since June, while corporate treasuries have collectively purchased almost 3 million ETH. These advances, combined with regulatory guidance on liquid staking and stablecoins, strengthen Ethereum’s story as the foundation of decentralized finance and the future of financial technology.

TECHNICAL ANALYSIS

Ethereum’s breakout above $4,868 indicates strong bullish pressure, with the price exhibiting a bullish pennant formation that could open the doors to the $6,000 level. The Relative Strength Index (RSI) is close to overbought levels, indicating increased buying pressure, while the Moving Average Convergence Divergence (MACD) is close to a bullish crossover, further bolstering the upward momentum. But sustained support at $4,100 will be important in keeping the bullish outlook intact, with a daily close below this level potentially changing sentiment and opening up deeper ETH corrections.

FORECAST

Ethereum’s solid breakout to new all-time highs puts it in play for additional advances, with support for momentum coming from more than $9 billion in ETF inflows, multi-million-dollar treasury purchases, and enhanced regulatory clarity. A close above $4,868 would confirm the bullish pennant formation, putting Ethereum on track for the $6,000 target in the near future. Additional institutional buying and favorable macroeconomic support, such as possible Fed rate cuts, should accentuate ETH’s upside potential.

Even as the setup is bullish, risks are present if Ethereum cannot hold above crucial support at $4,100. Breaking below this level may nullify the bullish momentum and leave ETH vulnerable to deeper retraces down to $3,472. With the RSI at the doorsteps of overbought territory, short-term profit-taking would also initiate volatility. Investors are warned against sharp pullbacks even as the bigger picture is aggressively positive.