Ethereum touches $4,900 for the first time

Trading in the $4,600 range after hitting an all-time high

Recorded around ₩6,800,000 at one point in Korea

The price of Ethereum surpassed $4,900 for the first time. Analysts say that the hint from Jerome Powell, Chairman of the Fed, about a benchmark interest rate cut acted as a catalyst for this rise.

According to CoinMarketCap on the 25th, the price of Ethereum soared to the $4,950 range around 4:20 a.m. that day, reaching a new all-time high. In Korea as well, it reached the ₩6,800,000 range around 3:30 a.m., setting a new record. After hitting its peak, Ethereum saw some correction and is now trading in the $4,600–$4,700 range.

Powell’s suggestion that the rate could be lowered is seen as having pushed the price higher. In his keynote speech at the ‘Jackson Hole Meeting’ held on the 22nd, Powell stated, "A shift in policy direction may be needed as the balance of risks is changing." Lowering interest rates usually boosts appetite for risk assets, including cryptocurrencies.

Powell assessed, "Due to the tariff and immigration policies of the Donald Trump administration, there is a unique balance where a clear slowdown is occurring in both labor supply and demand." Regarding inflation, he said, "It has become clear how tariffs impact consumer prices, but there is growing confidence that these effects will be temporary."

Prior to these remarks, there was speculation in financial markets that the Fed might not lower rates, mainly due to rising inflation concerns. The U.S. Producer Price Index (PPI) for July, released on the 14th, rose 3.3% year-on-year, beating the market forecast of 2.5%. After this, up to the 22nd, the prices of major cryptocurrencies, including Bitcoin and Ethereum, dropped over 10%, resulting in widespread weakness in crypto markets.

by Jinsung Kim jskim1028@hankyung.com