Ether climbed to its highest level in nearly four years on Friday, briefly touching $4,729 and setting off $351 million in liquidations for traders betting against the cryptocurrency. The move higher followed remarks from U.S. Federal Reserve Chair Jerome Powell, which fueled investor expectations of a more accommodative monetary policy environment. The rally has intensified speculation over whether ETH could soon cross the $5,000 threshold for the first time. Broader Market Signals Boost Momentum The surge in Ether coincided with gains across risk assets, including a 1.8% rise in the tech-heavy Nasdaq Index. This rebound reflects investors shifting away from bonds and other safe-haven positions as expectations of lower interest rates grow. Over the past month, ETH has surged 33%, fueled by optimism around both macroeconomic conditions and Ethereum’s strengthening fundamentals. Powell’s comments at the Jackson Hole Economic Symposium were a key catalyst: “The baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.” Bond markets are now pricing in a 45% probability that rates will fall to 3.5% or lower by March 2026, up from 37% the week prior, according to the CME FedWatch tool. On-Chain Activity Shows Strong Uptick Ethereum’s network activity has accelerated alongside the price rally. In the last 30 days, transactions have risen by 63% and active addresses by 26%. By contrast, Solana recorded only a 2% increase in transactions, with active addresses falling 14%. BNB Chain experienced a sharper decline, with transactions down by half during the same period, according to Nansen data. This divergence underscores Ethereum’s growing dominance among major smart contract platforms. Futures Market Reflects Growing Confidence Despite volatility, ETH futures markets suggest traders remain confident. Futures contracts are currently trading at a 7% premium compared to spot prices, up from just 4% earlier in the week. This indicates rising conviction among buyers even as some traders remain cautious, noting that Ether has yet to reclaim its 2021 all-time high of $4,868, unlike BNB and Tron, which now trade above their previous peaks. Analytics firm CryptoQuant has observed a notable increase in aggressive buying behavior in ETH futures, with demand for leveraged exposure holding strong. Aggregate open interest remains steady at 14.4 million ETH, equivalent to roughly $69 billion in dollar terms. Path Toward $5,000 The convergence of higher futures premiums, resilient leveraged positioning, and surging on-chain activity all point to further upside potential for Ether. While traders remain alert to resistance near all-time highs, sentiment suggests that a breakthrough to $5,000 could be imminent. Whether Ethereum sustains such levels will depend on both macroeconomic shifts and the continued growth of its ecosystem. For now, investors are watching closely as ETH inches toward a historic milestone.
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