Ethereum Rockets 41%, Cardano Gains Momentum as Altcoins Rally on Fed Optimism

The crypto market picked up steam thanks to positive developments from the macro front, most notably, a hint from Federal Reserve Chair Jerome Powell that interest rate cuts might be on the horizon. His remarks at the Jackson Hole symposium reassured investors that risk assets like cryptocurrencies could be back in favour. Within 24 hours, Bitcoin climbed approximately 3.02%, while Ethereum surged nearly 8.9%, and altcoins like XRP and Solana followed suit with gains of 4.9% and 4.25% respectively

Ethereum Steals the Spotlight

Ethereum (ETH) emerged as a top performer amid the rally. It posted a 41% increase in August alone, vastly outpacing the broader market’s average of 9%. Even more striking, ETH almost doubled its market value in just three months and delivered a strong 14% week-over-week rise.

Analysts attribute this surge to several tailwinds: heightened institutional demand, a pro-crypto regulatory landscape (thanks to legislation like the Genius Act), and technical upgrades like the Pectra overhaul enhancing network efficiency. Moreover, Ethereum’s network—central to stablecoins and tokenization, continues to draw steady investment, including from corporate treasuries and institutional funds.

Cardano’s Resilient Recovery

While Ethereum raced ahead, Cardano (ADA) also grabbed attention. It posted nearly a 20% weekly gain, all while the broader market treaded cautiously. A bullish golden cross—where the 50-day moving average rises above the 200-day—formed on ADA’s chart, a technical pattern that has preceded major rallies (up to a 238% rise in prior instances)

Further fueling optimism, ADA saw surging open interest, reaching a 7-month high, suggesting robust speculative demand. Combined with whale accumulation and ecosystem catalysts like the Midnight sidechain, traders are increasingly eyeing a breakout toward $1–$1.50

Beyond the Big Two: Altcoins Also Rally

Other altcoins joined the rally, too. XRP and Solana (SOL) displayed solid upside, while Litecoin (LTC) also gained ground during the same period. The common thread? Market optimism and renewed risk appetite among traders.

Crypto’s recent surge is no accident. It’s a product of favourable macro policy indications (like potential rate cuts), institutional confidence, and technical momentum. Ethereum leads the charge, followed by a determined Cardano rally, while other altcoins benefit from market rotation and optimism.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.