Well, it finally happened. Ethereum just pushed past its previous record, climbing over $4868 for the first time since 2021. I’ve been watching the charts all morning, and the climb was something else—a steady, almost relentless series of green candles ticking upward.
It’s a big moment, honestly. A lot of people had been waiting for this.
Powell’s Comments Spark the Move
So what kicked it off? It seems the main driver came from an unlikely place: the Federal Reserve. Jerome Powell spoke at the Jackson Hole meeting, and his tone was, well, pretty dovish. He strongly hinted that an interest rate cut could be coming in September. He didn’t promise anything, of course. They never do. But the suggestion was enough.
Investors took it as a signal. The idea of more liquidity entering the system got people excited about riskier assets again. With inflation still a concern and the labor market looking a bit shaky, maybe they’re looking for somewhere else to put their money. Cryptocurrency often fits that bill.
A Wave of Market Liquidations
But such a sharp price move always has a downside. It creates chaos for anyone using leverage. The data’s pretty staggering. In the last 24 hours, the crypto market saw over $684 million in positions get liquidated.
Most of that was from traders betting against the price—shorts. About $463 million in short positions were wiped out. On the other side, $220 million in long positions also got caught out. It’s a brutal reminder of how volatile this can be.
For Ethereum specifically, the liquidations were massive. Over $363 million. The vast majority, nearly $287 million, were shorts. That tells you most people weren’t expecting a surge like this.
Is The Optimism Warranted?
Now, here’s the thing. Not everyone is convinced this rally is built on solid ground. Some analysts are waving a cautious flag. They’re pointing to the risk of stagflation—that ugly mix of high inflation and low economic growth. The market might be getting ahead of itself, reading too much into Powell’s careful words.
It’s possible we’re seeing a burst of optimism that could cool off just as quickly. Then again, maybe not. Markets are funny that way.
One thing’s for sure: it’s been a wild day for anyone holding ETH. The charts are telling a story of a big win for some and a very costly lesson for others.
