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The price movement of Ethereum (ETH) is closely related to the monetary policy of the Fed, and the upcoming Jackson Hole meeting has become the focus of attention in the Crypto Assets market. The speech of Fed Chairman Powell will have a significant impact on the short-term direction of ETH.
Recently, signs of cooling inflation and a slowing job market in the U.S. have heightened market expectations for a possible 25 basis point rate cut in September, which has already driven ETH prices up over 10%. If Powell sends a dovish signal, it could stimulate more funds to flow into the crypto market, pushing ETH to challenge the $3000 level. Conversely, if the stance leans towards hawkish, ETH could retreat to around $2500 to seek support.
However, ETH is not merely a speculative asset; its own ecosystem and technological foundation provide a certain level of resistance to price declines. Currently, over 40% of ETH is staked, which reduces the circulating supply to some extent and helps alleviate selling pressure. In addition, the upcoming Cancun upgrade is expected to lower Gas fees and improve network efficiency, laying the groundwork for the long-term development of ETH.
The speech at 10 AM Eastern Time on August 22 (10 PM Beijing Time) will be a critical moment. Before the speech, the market may experience volatility due to expectation discrepancies. Within 30 minutes after the speech, the ETH price may undergo severe fluctuations, with historical data showing that the price movement during this period may exceed 10%.
The shift in Fed policy is still to be observed whether it is the prelude to a bull market or a brief interlude. Investors should closely follow the speech content on the 22nd and assess future investment opportunities in conjunction with the macroeconomic situation and the technical development of ETH itself. Against the backdrop of increasing global economic uncertainty, the performance of ETH will continue to be influenced by various factors.