Federal Reserve Chairman Powell will speak at the Jackson Hole Global Central Bank Annual Meeting on August 22 at 22:00. This meeting, known as the 'annual life-and-death event' for global financial markets, may become a key turning point for ETH's trend. Institutions have already taken action, sweeping up 510,000 ETH in the past 72 hours—now is not the time to be shaken out before policy implementation. Only 1 day remains until Powell may release a 'policy signal,' and institutional accumulation actions are already quite evident. Historically, there have been 3 occasions at the Jackson Hole Annual Meeting where Powell released dovish statements, directly leading to a significant rise in risk assets, and this time, institutions are clearly positioning themselves in advance.
'910,000 ETH Unbonding' is a panic trap: the traders create a selling illusion by 'deleveraging.'
The sudden appearance of '910,000 ETH unbonding' data instantly triggered a market sell-off. However, the truth is: unbonding does not equal selling! Currently, on-chain lending rates have soared to 18%, reaching a year-to-date peak. Holders are unbonding more to reduce liquidation risks and passively deleverage, rather than actively dumping. The actual selling pressure is less than 30% of the surface numbers. Traders are deliberately amplifying this panic, waiting for investors to hand over their chips 36 hours before Powell's speech, allowing institutions that positioned themselves ahead of time to easily take over. While retail investors are frightened away by the 'unbonding numbers,' institutions have already initiated the 'pre-policy bottom-hunting' mode. These actions send a clear signal: institutions are betting on Powell releasing dovish signals.
Institutional 'bottom-hunting' roadmap: why ETH has become 'hot property.'
Institutions have crazily swept up 510,000 ETH in the past 72 hours, backed by a clear 'bottom-hunting' roadmap.
Spot ETF approval opens the door for institutions to enter.
In May 2024, the Ethereum spot ETF was approved, becoming a key node for institutional funds to flow in. By July 2025, the management scale of Ethereum ETFs exceeded $5.5 billion, directly driving companies like SharpLink Gaming to sweep up 438,000 ETH, even surpassing the Ethereum Foundation's holdings, and mimicking MicroStrategy by including ETH in their balance sheets. This change not only brings a substantial influx of funds to ETH but, more importantly, transforms ETH from a purely speculative crypto asset into an institutionally recognized digital financial infrastructure.
Ethereum's technological upgrade highlights its long-term value.
Ethereum's own technological upgrades are also an important factor attracting institutions. Sharding expansion boosts throughput to over 100,000 TPS, significantly enhancing network processing capability; the EIP-1559 deflationary mechanism has destroyed over 4.29 million ETH, reducing the market circulation; the Layer 2 ecosystem has exploded, such as Arbitrum and Optimism, further enhancing the vitality and competitiveness of the Ethereum ecosystem. These technological upgrades provide solid support for ETH's long-term value and show institutions its immense potential in the future digital finance field.
Macro policy expectations: dovish signals may become a 'tailwind.'
From a macro policy perspective, market expectations for the Federal Reserve to start lowering interest rates in September are unprecedentedly high. In this context, risk assets like ETH are expected to benefit from a loose monetary policy environment. Institutions are positioning themselves in ETH, betting on Powell releasing dovish signals at the Jackson Hole annual meeting; if this comes true, the price of ETH may welcome a new round of increases.
How retail investors should respond: do not be swayed by panic, grasp institutional movements.
In the face of starkly different operations between institutions and retail investors, how should retail investors respond to this game of 'panic and positioning'?
Do not be misled by short-term fluctuations: the sell-off triggered by '910,000 ETH unbonding' is likely a concentrated release of short-term panic sentiment. Retail investors should not be deceived by such short-term fluctuations and blindly follow the trend to sell. Historical data shows that in similar market panic situations, investment opportunities often lie hidden. For instance, in 2024, Ethereum's price also experienced significant fluctuations, but then quickly rebounded to set new highs as market sentiment stabilized and institutional funds entered.
Pay attention to institutional movements: large-scale accumulation by institutions is an important signal. Retail investors can keep track of institutional holdings by monitoring on-chain data, public company announcements, etc., to stay informed about changes in institutional positions. For example, SharpLink Gaming's continued accumulation of ETH has created a demonstration effect in the market, attracting more funds into the Ethereum market. Following institutional steps and positioning at reasonable price levels may yield benefits from ETH's price increase.
Manage risks effectively: despite the positive long-term outlook for ETH, the high volatility in the crypto market still exists. Retail investors should reasonably control their positions during the investment process to avoid excessive leverage. A diversified investment strategy can be employed to spread funds across different crypto assets and traditional financial assets, reducing the impact of a single asset's volatility on the investment portfolio.
Stay calm and patient before policy implementation:
On the eve of Federal Reserve Chairman Powell's speech, the ETH market is caught in a game of 'panic and positioning.' The 'unbonding panic' on-chain sharply contrasts with institutions' 'crazy bottom-hunting.' Behind this game lies differing expectations regarding the direction of the Federal Reserve's monetary policy and market participants' deep exploration of ETH's long-term value. For retail investors, it is crucial not to be swayed by panic but to remain calm, pay attention to institutional movements, and manage risks effectively. At this critical moment before policy implementation, patiently wait for the market to provide a clear direction to seize opportunities and achieve steady asset growth in this crypto market game.
