Ethereum climbed to $4,837 within 24 hours, approaching its 2021 all-time high of $4,878, following Federal Reserve Chair Jerome Powell's Jackson Hole speech hinting at upcoming rate cuts. The second-largest cryptocurrency by market capitalization also broke through a critical technical resistance level against Bitcoin that had held for nearly eight years, according to analyst data reviewed Friday.
What to Know:
- Ethereum reached $4,837, just $41 below its historic peak, after Powell's dovish Fed comments
- Technical analysis shows ETH/BTC pair broke above 8-year descending trendline for first time since 2017
- Analysts project potential targets of $5,400-$5,477 based on bull flag pattern formations
Technical Breakthrough Signals Potential Rally
Cryptocurrency analyst Ted Pillows documented the ETH/BTC breakout on social media platform X, highlighting Ethereum's decisive move above the long-term descending trendline. The pair traded around 0.04077 following a 7% gain for Ethereum against Bitcoin's relative performance.
Charts spanning the 2-week timeframe reveal multiple failed attempts to breach this resistance since 2017. The current breakout attempt began in July 2025 and gained momentum over recent weeks. The most recent 2-week candlestick shows the ETH/BTC pair moving decisively above the trendline.
"I just want a 2W confirmation above this level, and you'll be surprised to see the Ethereum rally," Pillows stated. A confirmed close above resistance would transform the former downtrend into a support base for the ETH/BTC trading pair.
Bull Flag Formation Points to $5,400 Target
Technical analyst Titan of Crypto identified a bullish setup on Ethereum's 4-hour USD chart. The analysis reveals Ethereum breaking out of a well-defined bull flag formation, a continuation pattern typically occurring mid-trend.
The breakout commenced when Ethereum surpassed $4,200 in August. Price targets range from $5,400 to $5,477, suggesting Ethereum could surpass its all-time high and establish new price territories above $5,000. Bull flag patterns consist of a sharp price advance followed by a brief consolidation period before resuming the upward trend. This technical formation often indicates strong underlying momentum in cryptocurrency markets.
Understanding Key Technical Terms
The ETH/BTC trading pair measures Ethereum's value relative to Bitcoin rather than traditional fiat currencies. A rising ETH/BTC ratio indicates Ethereum outperforming Bitcoin, while declining ratios suggest Bitcoin strength.
Descending trendlines connect successive lower highs over extended periods, often acting as resistance levels in technical analysis.
Breaking above such long-established trendlines typically signals significant shifts in market sentiment and potential trend reversals.
Bull flag formations require high trading volume during the initial price surge and decreased volume during consolidation. The pattern completion occurs when price breaks above the flag's upper boundary with renewed volume expansion.
Market Context and Federal Reserve Impact
Powell's Jackson Hole remarks suggested the Federal Reserve may begin cutting interest rates after maintaining elevated levels to combat inflation. Lower interest rates historically benefit risk assets including cryptocurrencies by reducing opportunity costs of holding non-yielding investments.
Ethereum's technical breakout coincides with broader cryptocurrency market strength following the Fed chair's dovish commentary. The timing suggests both fundamental catalysts and technical factors align to support further price appreciation.
Closing Thoughts
Ethereum's breakthrough of 8-year Bitcoin resistance levels, combined with proximity to all-time highs and supportive Federal Reserve messaging, creates conditions for potential continued outperformance. Technical targets suggest prices could reach $5,400-$5,477 if current momentum sustains through confirmed breakout levels.