Recent surge in Ethereum triggered by optimistic statements from the Fed chair has impacted the crypto market and stocks of companies with significant ETH holdings.
Notable Surge in Ethereum
On August 22, Ethereum ([ETH](https://crypto.news/price/ethereum/)) experienced a surge of over 14%, rising from a low of $4,205 to $4,820, just 1.5% away from its all-time high of $4,891 set four years ago. Trading volume increased by 95% over the last 24 hours, exceeding $68.22 billion and surpassing Bitcoin's ([BTC](https://crypto.news/price/bitcoin/)) $79.86 billion.
Fundamental Factors Support Growth
The rise in Ethereum coincided with optimistic remarks from Fed Chair Jerome Powell at the Jackson Hole conference about potential adjustments in monetary policy. Marcin Kazmierczak, co-founder of RedStone, believes that a Fed easing cycle could create a sustainable foundation for ETH to break above the $4,800-$5,000 resistance. However, he emphasizes the need for growth to be supported by fundamentals like DeFi activity and institutional flows through ETFs.
Public Markets Respond to ETH Price Surge
The price surge of Ethereum influenced public equity markets as well. Companies with significant ETH holdings, such as Bitmine Immersion and SharpLink Gaming, saw their shares rise by 14% and 12%, respectively. Despite significant inflows of $287.6 million into Ethereum-focused ETFs, the outlook remains uncertain due to potential shifts in Fed policy.
Ethereum's rise, spurred by expectations of potential Fed rate cuts, showcases optimism in the crypto market while highlighting the need for sustainable growth based on fundamentals.
