Ether Gains Momentum as ETF Holdings Soar Amid Dovish Fed Signals
Ether (ETH) experienced a significant price surge, registering a 10% gain, as market sentiment turned positive following remarks from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. This rally was substantially bolstered by record inflows into Ether-backed Exchange Traded Funds (ETFs), which have collectively accumulated over 6.4 million ETH, signaling robust institutional demand and a notable tightening of supply within the market.
Institutional Momentum and Macro Cues
The cryptocurrency market reacted favorably to what were perceived as dovish comments from the Federal Reserve, suggesting a potentially less aggressive stance on monetary policy. Such macroeconomic shifts often translate into increased investor appetite for risk assets, including digital currencies. In this climate, Ether's price momentum accelerated, with the asset testing the $4,668 resistance level, reflecting renewed confidence among traders.
A pivotal factor underpinning this price appreciation is the escalating interest from institutional investors. The consistent and substantial inflows into Ether ETFs underscore a growing mainstream acceptance of the second-largest cryptocurrency. These unprecedented accumulations have pushed total ETF holdings past the 6.4 million ETH mark, effectively reducing the circulating supply available on exchanges. This supply constraint, coupled with heightened demand, naturally exerts upward pressure on Ether's market value, indicating a maturing market structure for the digital asset.