Ethereum’s price has climbed above $4,800 as the broader cryptocurrency market shows signs of recovery. The surge follows a period of volatility and has some analysts speculating whether the second-largest cryptocurrency is on its way to setting new all-time highs.
Ethereum Achieves New Multi-Year High
For the first time since 2021, Ethereum surpassed the $4,800 resistance on Friday, reaching a multi-year high of $4,834. The cryptocurrency has experienced a 14% increase in value over the past 24 hours, which has been attributed to Federal Reserve Chairman Jerome Powell’s annual address at Jackson Hole.
Powell hinted at the possibility of an interest rate reduction in his speech, stating that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance” in light of the restrictive nature of policy.
The market experienced a significant increase in response to Powell’s comments, with Bitcoin (BTC) surging from its local range low to the $117,000 region. In the interim, Ethereum ascended from the $4,200 support level to reclaim the critical $4,700 barrier.
Jordi Alexander, CEO of Selini Capital, a crypto trading firm, stated to CNBC that Powell’s dovish comments had caught crypto traders off guard.
“Clear risk-off moves in assets such as crypto and tech have characterized the market positioning in recent sessions. Today’s establishment of a September rate cut is resulting in a panicked repositioning, which could persist through the illiquid weekend as shorts are squeezed,” he confirmed.
In the interim, Joseph Chalom, co-CEO of SharpLink Gaming, declared that “the markets are adoring Powell’s dovish speech.” Rate reductions in September are imminent. We are currently at a critical juncture in the market cycle.
Is ETH Prepared for Additional Growth?
ETH has been consolidating between $3,762 support and $4,631 resistance since the early August breakout, retesting the $4,000-$4,100 mid-zone of this week’s retracement. This is particularly noteworthy.
Ethereum’s ascent above the $4,800 resistance persisted on Friday afternoon. Last week, the King of Altcoins reached a local high of $4,788 before being rejected, which was an abortive attempt to test this level.
Analyst Crypto Jelle highlighted a one-week falling wedge pattern on ETH’s chart, which targeted a breakout to the $4,600-$4,800 area. The analyst suggested that Ethereum is prepared to pursue its all-time high of $4,878 following the breakout, following today’s price increase.
Furthermore, he observed that ETH has already exited an 18-month bullish megaphone this month, which is aimed at the $10,000 level. During this week’s pullback, he clarified that the cryptocurrency has effectively retested the critical resistance level, approximately $4,000, and has “minimal remaining resistance.”
Nevertheless, he cautioned that a subsequent decline is probable after the substantial increase but also stated that “the intention is evident.” This market desires an increase.
In the same vein, Ted Pillows confirmed that volatility was anticipated following Powell’s speech, citing that it had occurred in previous years. Nevertheless, he predicted that a significant ETH rally would ensue, as in the past.
Ethereum is currently trading at $4,799, representing a 32.6% increase in the monthly timeframe.
