ETH price surge appears as hopes for Fed rate cuts grow: Is $6K Ether on the horizon?

Key Highlights

Ethereum (ETH) jumped 13% on Friday after Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts in a speech at Jackson Hole.

Both on-chain and technical indicators suggest that ETH could potentially hit $6,000 shortly.

On Friday, Ether (ETH) demonstrated impressive strength, rising 13% to $4,788 right after the Wall Street opening, largely influenced by Powell’s remarks at Jackson Hole. It quickly climbed from $4,200, regaining the $4,600 level that had marked a price drop over the preceding week, according to Cointelegraph Markets Pro data.

This positive move correlates with Powell’s speech, which hinted at the possibility of reducing interest rates this September, igniting a wave of optimism in the market. As per CME Group data, the chances of a rate cut at the upcoming FOMC meeting on September 17 have surged from 75% to 91.5%.

This backdrop contributes to a bullish sentiment that might propel ETH toward new heights.

ETH surpassed $4,600, with one analyst noting, “Depending on how ether reacts…” Some indicators are suggesting that ETH might be gearing up to reach a new all-time high soon.

Spot ETFs Bolstering ETH Prices

Institutional demand appears to be a key driver behind the bullish outlook for Ether, particularly evident from significant inflows into Spot Ethereum ETFs. On August 21, the Spot Ether ETF broke a four-day downturn, attracting $287.6 million, and has seen a net inflow of $2.55 billion for the month so far, according to data from Farside Investors.

As reported by Cointelegraph, Ethereum managed to maintain its lead in global exchange-products last week.

Exchange Supply at Historically Low Levels

The amount of ETH on exchanges has dropped to its lowest in nine years, falling to 14.9 million. Data from GlassNode indicates this is the first time this level has been hit since July 2016.

This ongoing decline in ETH held by exchanges correlates with a surge in ether prices, marking an 180% increase since last October as withdrawal activity gained momentum. Some analysts believe this shrinking supply could push prices higher.

“The amount of ETH available on centralized exchanges is at a nine-year low,” one expert remarked recently, suggesting that a growing number of investors might be opting to hold their ETH over selling.

Potential for $6,000 as Technical Indicators Align

Looking at the technical landscape, ETH’s price movement shows bullish patterns on daily charts. The recent breakout above $4,300 could see ETH soaring as high as $6,150, representing a potential 43% increase from current levels.

Moreover, the daily relative strength index stands positively at 66, indicating market conditions still favor a rise, providing further support for the notion that ETH could hit these targets.

Some traders are even suggesting that following a four-year downward trend, recent chart patterns accompanied by bullish indicators may lead towards a rally aiming for $10,000.

Other analysts share similar forecasts, speculating that ETH might exceed $10,000 in 2025, driven by strong institutional demand via Spot Ethereum ETFs.

This article does not offer investment advice. All investment actions involve risk, and readers should conduct their own research before making decisions.