In the past 24 hours, Ethereum has shown significant growth, reaching $4,837 and approaching its all-time high. This comes after comments from Federal Reserve Chair Jerome Powell regarding potential rate cuts.
Technical Breakthrough Signals Potential Rally
Cryptocurrency analyst Ted Pillows reported on the ETH/BTC breakout on social media platform X, emphasizing Ethereum's decisive move above the long-term descending trendline. The pair traded around 0.04077 following a 7% gain for Ethereum against Bitcoin.
Charts spanning the 2-week timeframe reveal multiple failed attempts to breach this resistance since 2017. The current breakout attempt began in July 2025 and gained momentum over recent weeks. The most recent 2-week candlestick shows the ETH/BTC pair moving decisively above the trendline.
"I just want a 2W confirmation above this level, and you'll be surprised to see the Ethereum rally," Pillows stated.
Bull Flag Formation Points to $5,400 Target
Technical analyst Titan of Crypto identified a bullish setup on Ethereum's 4-hour USD chart. The analysis reveals Ethereum breaking out of a well-defined bull flag formation, a continuation pattern typically occurring mid-trend.
The breakout commenced when Ethereum surpassed $4,200 in August. Price targets range from $5,400 to $5,477, suggesting Ethereum could surpass its all-time high and establish new price territories above $5,000. Bull flag patterns consist of a sharp price advance followed by a brief consolidation period before resuming the upward trend.
Federal Reserve's Impact on the Market
Powell's Jackson Hole remarks suggested the Federal Reserve may begin cutting interest rates after maintaining elevated levels to combat inflation. Lower interest rates historically benefit risk assets including cryptocurrencies by reducing opportunity costs of holding non-yielding investments.
Ethereum's technical breakout coincides with broader cryptocurrency market strength following the Fed chair's dovish commentary. The timing suggests both fundamental catalysts and technical factors align to support further price appreciation.
Ethereum's breakthrough of 8-year Bitcoin resistance levels, combined with proximity to all-time highs and supportive Federal Reserve messaging, creates conditions for potential continued outperformance. Technical targets suggest prices could reach $5,400-$5,477 if current momentum sustains through confirmed breakout levels.
