Jackson Hole ignites risk sentiment! Ethereum hits historical highs, aiming for $5,500.

At the Jackson Hole Central Bank annual meeting, which has attracted global investors, Federal Reserve Chairman Powell released clear dovish signals, causing market expectations for a rate cut in September to soar to 75%. This macro favourable information instantly ignited the buying enthusiasm for risk assets, with Ethereum (ETH) quickly rebounding after holding the critical liquidity at $4,000, approaching the historical high of $4,880. Next, will ETH head straight for $5,500, or will it test $4,000 again?

Macroeconomic Catalyst: The Dovish Shockwave from Jackson Hole

(Source: CME Fed Watch)

This week's Jackson Hole meeting has become the key event driving the ETH surge. Powell emphasized the risks of economic downturn in his speech and hinted that if the situation worsens, the Federal Reserve (FED) would further ease policies.

This position has reduced market concerns about high interest rates, with funds rapidly flowing into growth and high-risk assets, making cryptocurrencies one of the biggest beneficiaries. Due to ETH's exposure to institutional capital from ETFs and its deep liquidity, it has stood out in this wave of capital inflow.

$4,000 becomes a rebound springboard

(Source: Trading View)

Just a few days ago, ETH briefly fell to the 4,000 dollar mark, where a large number of stop-loss and liquidity orders were concentrated. Bears exerted pressure here, while bulls quietly accumulated.

After this liquidity zone was tested and cleared, the price quickly rebounded, shooting up near $4,880, almost returning to its historical high. This wave of movement is a typical "Liquidity Scan + Macro Catalyst" combination.

Technical Aspect: FVG Support and Upside Potential

Currently, ETH has stabilized in the 4,860–4,880 USD range, and the technical structure shows:

Bullish conditions: If the fair value gap (FVG) of $4,420–$4,600 continues to be defended, it will provide solid support for the bulls. A breakthrough above $4,880 will target the range of $5,200–$5,500, and if macro loosening policies continue, it may even challenge $5,800.

Bearish Risk: If the price falls below $4,350, the FVG support will fail, reopening the possibility of a retracement to $4,000. If market sentiment turns sharply negative, it could even reach the $3,750–$3,800 area.

Trader Roadmap

Bullish Scenario

(Source: Trading View)

Maintain the FVG area (4,420–4,600 USD).

Successfully broke through the historical high of 4,880 USD.

Target price: $5,200 → $5,500 → $5,800.

Bearish Scenario

(Source: Trading View)

Unable to break through 4,880 USD and continues to fall back.

Falling below 4,350 USD triggers selling pressure.

Downward target: 4,200 → 4,000 → 3,750 USD.

Conclusion

Ethereum has strongly rebounded from $4,000 to near historical highs, perfectly illustrating the price discovery mechanism of the crypto market—liquidity scanning combined with macro favourable information. In the short term, the trend of ETH will depend on whether it can hold above $4,880. If the breakout is successful, $5,500 or even higher prices will be just around the corner; if the surge is blocked, the market may face a new round of correction. For traders, this is a critical battle about liquidity and sentiment.