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Ethereum (ETH) price surged over 13 percent on Friday to reach a multi-year peak of $4,834 during the mid North American session. Ether price outshined Bitcoin (BTC) and the top large-cap altcoins in Friday’s bullish rebound.
The sudden Ether price jump resulted in more than $673 million rekt from the wider crypto leveraged market, mostly involving short traders. As a result, the total crypto market cap surged over 5 percent in the past 24 hours to hover about $4.12 trillion at the time of this writing.
Top Reasons Why Ethereum Price Outperformed Wider Crypto Market Today
The main reason why the Ethereum price recorded a sharp uptick on Friday was due to the comments from Fed Chair Jerome Powell. During his speech at the Jackson Hole Symposium on Friday, Fed Chair Powell hinted at a possible rate cut in September.
The Ether price jump on Friday was heavily bolstered by the renewed demand from whale investors. For instance, BlackRock has led institutional investors from rotating their capital from Bitcoin to Ethereum’s ETFs.
According to market data analysis from SoSoValue, BlackRock’s IBIT recorded a net cash outflow of $127 million on Thursday. On the other hand, BlackRock’s ETHA registered a net cash inflow of $233 million on Thursday, thus a cumulative total net inflow of $12 billion.
Midterm Targets
Following Friday’s ETH price pump, it is safe to say that the altcoin has little to no resistance ahead. With the ongoing capital rotation from Bitcoin to Ethereum, the ETH price is well-prince to enter its price discovery in the near future.
However, a potential consolidation is likely to happen to cool down the leveraged market. In such a scenario, the ETH price will be preparing for its parabolic rally in the coming weeks.