With Powell's single dovish remark, ETH broke through $4,888 to set a new historical high! Is the next target aimed at the $5,000 mark?

The dovish remarks from the Federal Reserve Chairman at the Jackson Hole symposium instantly ignited the cryptocurrency market, with Ethereum surging 14% overnight to reach a new historical high.

The dovish remarks by Federal Reserve Chairman Powell at the Jackson Hole annual symposium became the last straw for bears. Last night, ETH surged from $4,230 to a high of $4,888 by 5:30 AM today, finally breaking the historical high of $4,870 set in November 2021.

01 Dovish tones, the Federal Reserve shifts

Powell's speech at the Jackson Hole symposium triggered a massive market upheaval. He explicitly acknowledged for the first time that 'downside risks are increasing' and stated that 'due to the restrictive nature of policy, the fundamental outlook and the evolving risk balance may require us to adjust our policy stance.'

This statement was interpreted by the market as a clear signal that the Federal Reserve is about to initiate a rate-cutting pathway. Data from the Chicago Mercantile Exchange shows that the market's expectation probability of a 25-basis-point rate cut in September surged from 73% a week ago to 89%.

As soon as Powell finished speaking, risk assets surged. Ethereum performed particularly well, with an increase of nearly 10% in a single day, adding $420 in market value within a day.

02 Institutions flood in, ETH ETF inflows surpass Bitcoin

Institutional investors are flooding into the Ethereum market at an unprecedented pace. Data shows that since June, U.S. spot Ethereum ETFs have attracted over $9 billion in inflows.

BlackRock and Fidelity, the two giants, occupy two-thirds of the market share, with BlackRock's ETF setting a record of $640 million in inflows in a single day.

On August 8, the total inflow for the ETH ETF was $461 million, while BTC only had $404 million. This is a significant signal that institutional demand for Ethereum has clearly surpassed that for Bitcoin for the first time.

03 Corporate treasury strategy, ETH becomes a new reserve asset

The trend of companies incorporating Ethereum into their balance sheets has evolved from individual cases to a systemic wave. As of August 23, the total value of corporate ETH holdings surged to $31 billion.

NASDAQ-listed BitMine Immersion Technologies holds 1.523 million ETH (approximately $7.3 billion) and plans to raise $20 billion to continue increasing its holdings, aiming to control 5% of the global ETH circulating supply.

Holding ETH not only allows for potential appreciation but also earns over 3% native yield through PoS staking, creating long-term sustainable financial returns. This is different from Bitcoin's treasury strategy focused solely on price speculation, and is more akin to operating infrastructure assets, providing both capital appreciation and cash flow.

04 Technical analysis breakthrough, is the next target $6000?

ETH has confirmed a breakout from a four-year downtrend, with the key resistance level of $4,100 now turned into strong support.

Technical models indicate that around $6,100 is a reasonable target, with the 1.618 Fibonacci extension of the 2,200-4,100 dollar upward wave pointing to $6,100.

Several top institutions have raised their target price for Ethereum. Standard Chartered has raised its year-end target to $7,500, looking at $25,000 by 2028; Placeholder Ventures partner Chris Burniske even proposed an optimistic scenario forecast of $13,000.

As of the time of writing, ETH is hovering around $4,778, with a slight technical pullback expected today before continuing the assault on the psychological barrier of $5,000.

Once it breaks through $5,000, the next key resistance level will be in the $5,300-5,500 range, with the ultimate target aiming at $6,000.