Recent changes in Federal Reserve policy have caused significant volatility in the ether market. The rise in cryptocurrency prices, particularly ether, was driven by Fed Chair Jerome Powell’s speech.
Fed Chair’s Speech and Market Reaction
Ether breached the $4,350 resistance and tested the supply zone between $4,550 and $4,650 after Jerome Powell signaled the possibility of a rate cut in September, sparking a sharp reaction across risk assets.
Powell highlighted a shifting policy stance, noting that the balance of risks "may warrant adjusting policy". He also cautioned that stable inflation expectations cannot be taken "for granted".
Record Inflows into Ether ETFs
In July and August, spot ETH ETFs posted record inflows of $7.88 billion. Data shows that ETH custodial holdings within ETFs reached 6.42 million ETH, increasing by 2.27 million ETH in just six weeks, representing a 58% growth.
Trends in Institutional Investments
Analysts noted that the number of addresses holding over 10,000 ETH has grown by over 200 since July, reinforcing the institutional accumulation narrative. Combined, ETF custodians and strategic treasury companies now hold more than 10.52 million ETH.
The rise in ether and record inflows into ETFs indicate growing interest from institutional investors. Support from funds and institutional holders may suggest further price increases and market resilience.
