Ethereum (ETH) fell about 10% in just a few days after hitting a historical high of $4,930 earlier last week, reporting $4,411 on September 1. Although Federal Reserve Chairman Powell hinted at interest rate cuts at Jackson Hole, which once drove ETH to surge, that momentum has completely faded. However, several analysts remain confident that the long-term target of $10,000 for this cycle of ETH is still valid.
Short-term Boost from Powell's Rate Cut Expectations
Event Review: Powell stated at Jackson Hole that the Federal Reserve (FED) is considering lowering interest rates, and the market reacted quickly at that time, with ETH reaching a new high.
Momentum waning: Noted analyst Ted pointed out that ETH has "fully retraced" the gains brought by Powell's speech, which would not happen in a truly strong market.
Analyst Ted's view: "I am not a long-term bear, but a short-term bear. Ethereum will rise to $10,000 during this cycle."
Why isn't the market responding to interest rate cut hints?
Political Pressure: President Trump criticizes Powell for slowing down economic growth and calls for faster interest rate cuts.
Powell's stance: emphasizes that inflation is still high, the economic situation is unstable, and is unwilling to fully cater to political pressure.
Market reaction: Investors are skeptical about the sustainability of interest rate cuts and choose to lock in profits, leading to a general decline in ETH and altcoins.
Next Key Catalyst: FOMC Meeting
Time: September 16–17
Potential impact: If the meeting releases a clear signal for interest rate cuts, it may reignite bullish sentiment in the cryptocurrency market.
Long-term perspective: Analysts believe that interest rate cuts combined with macroeconomic benefits may catalyze the final wave of the bull market in 2024-2025.
The Logic Behind the ETH 10,000 Target
Macroeconomic liquidity recovery: Interest rate cuts will drive funds back to high-risk assets.
On-chain application growth: DeFi, NFTs, and L2 scaling solutions continue to expand the ETH ecosystem.
Institution adoption: more ETFs, asset management products, and corporate asset allocation of ETH
Technical trend: The pullback after breaking the historical high is a healthy adjustment, which is building momentum for the next wave of increase.
Conclusion
Powell's interest rate cut hints, although lacking short-term momentum, have not changed the long-term upward structure of ETH. As the September FOMC meeting approaches, the market may welcome new catalysts. For long-term investors, the $10,000 ETH target is still on the horizon, and the last three to four months of this year could be a crucial period to determine whether this target can be achieved.
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The Powell effect fades! Ethereum has dropped 10% from its historical high, but the $10,000 target is still on track.
Ethereum (ETH) fell about 10% in just a few days after hitting a historical high of $4,930 earlier last week, reporting $4,411 on September 1. Although Federal Reserve Chairman Powell hinted at interest rate cuts at Jackson Hole, which once drove ETH to surge, that momentum has completely faded. However, several analysts remain confident that the long-term target of $10,000 for this cycle of ETH is still valid.
Short-term Boost from Powell's Rate Cut Expectations
Event Review: Powell stated at Jackson Hole that the Federal Reserve (FED) is considering lowering interest rates, and the market reacted quickly at that time, with ETH reaching a new high.
Momentum waning: Noted analyst Ted pointed out that ETH has "fully retraced" the gains brought by Powell's speech, which would not happen in a truly strong market.
Analyst Ted's view: "I am not a long-term bear, but a short-term bear. Ethereum will rise to $10,000 during this cycle."
Why isn't the market responding to interest rate cut hints?
Political Pressure: President Trump criticizes Powell for slowing down economic growth and calls for faster interest rate cuts.
Powell's stance: emphasizes that inflation is still high, the economic situation is unstable, and is unwilling to fully cater to political pressure.
Market reaction: Investors are skeptical about the sustainability of interest rate cuts and choose to lock in profits, leading to a general decline in ETH and altcoins.
Next Key Catalyst: FOMC Meeting
Time: September 16–17
Potential impact: If the meeting releases a clear signal for interest rate cuts, it may reignite bullish sentiment in the cryptocurrency market.
Long-term perspective: Analysts believe that interest rate cuts combined with macroeconomic benefits may catalyze the final wave of the bull market in 2024-2025.
The Logic Behind the ETH 10,000 Target
Macroeconomic liquidity recovery: Interest rate cuts will drive funds back to high-risk assets.
On-chain application growth: DeFi, NFTs, and L2 scaling solutions continue to expand the ETH ecosystem.
Institution adoption: more ETFs, asset management products, and corporate asset allocation of ETH
Technical trend: The pullback after breaking the historical high is a healthy adjustment, which is building momentum for the next wave of increase.
Conclusion
Powell's interest rate cut hints, although lacking short-term momentum, have not changed the long-term upward structure of ETH. As the September FOMC meeting approaches, the market may welcome new catalysts. For long-term investors, the $10,000 ETH target is still on the horizon, and the last three to four months of this year could be a crucial period to determine whether this target can be achieved.