Ether jumps 10% after Powell’s Jackson Hole remarks as ETF holdings top 6.4M ETH
Ether rallied roughly 10% after Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium signaled a possible shift toward looser policy, briefly pushing ETH into the mid-$4,600s as it cracked a key resistance level.
Spot Ether exchange-traded funds recorded historic inflows in July and August, adding about $7.88 billion and driving custodial ETF balances to approximately 6.42 million ETH. That rapid accumulation has removed a substantial amount of supply from spot markets and coincided with a sharp increase in institutional demand.
Price action showed ETH breaking above a repeatedly tested barrier near $4,350 and moving into the $4,550–$4,650 supply zone. The immediate upside was strong: ETH posted an hourly gain of about 7% right after the Fed comments and technical patterns in shorter timeframes suggested a bullish breakout. Analysts noted potential resistance near prior highs around $4,800, where selling pressure could re-emerge.
On-chain and market-data providers highlighted the scale of the ETF-driven accumulation. Custodial holdings rose from roughly 4.15 million ETH on July 8 to about 6.42 million ETH by Aug. 21, representing a large and rapid increase in tokens locked within custodial vehicles. Observers described the flows as a structural demand shock that thins exchange order books and makes the market more sensitive to sizeable trades and ETF rebalancing.
Alongside ETF purchases, larger on-chain holders have also been expanding positions: the number of addresses holding more than 10,000 ETH increased in recent weeks, reinforcing the narrative of growing institutional and treasury accumulation. Combined, ETF custodians and strategic treasury accounts now control over 10 million ETH, further tightening available liquid supply.
Market commentators warned that while ETFs create a persistent bid under prices and compress volatility over time, they also raise the market’s sensitivity to flows and rebalances. Short-term price swings may therefore be larger when custodial inventories shift.
This rewritten report is a summary of the original Cointelegraph coverage and is for informational purposes only. It does not constitute investment advice; readers should perform their own research before making financial decisions.
