Will Ethereum Price Crash as Powell’s Last Jackson Hole Speech Looms?

Ethereum price is holding above the $4,200 mark after an explosive summer rally, but the next move hinges on more than just charts. With Federal Reserve Chair Jerome Powell preparing his final Jackson Hole speech, political pressure from President Trump, and the growing weight of tariffs on the US economy, crypto investors are asking one key question: will ETH price crash or not?

Macro Backdrop: Powell, Tariffs, and Interest Rates

A top Federal Reserve policymaker has shut the door on hopes for a September rate cut, pointing to stubborn inflation and a still-strong labor market. With no urgency to ease, the Fed is signaling tighter conditions for longer. That’s a setback for crypto, which typically rallies when monetary policy turns looser. Instead, traders are staring at a stretch of high rates and limited liquidity—headwinds that could drag on both Bitcoin and altcoins in the near term.

The Fed is walking a tightrope. Inflation is still elevated, tariffs are adding fresh upward pressure on consumer prices, and Trump is demanding lower rates ahead of the September policy meeting. Investors are split on whether the Fed will deliver a rate cut or hold steady. Powell is unlikely to tip his hand at Jackson Hole, which means markets may be left guessing until the data arrives.

For Ethereum, this uncertainty matters. Rate cuts tend to fuel risk assets like crypto by increasing liquidity and lowering the cost of capital. But if the Fed doubles down on fighting inflation, capital could flow back into bonds and dollars, putting ETH under pressure.

Ethereum Price Prediction: Where Things Stand Now?

ETH/USD Daily Chart- TradingView

The ETH daily chart shows Ethereum consolidating just under $4,300 after testing resistance near $4,600 earlier in August. Price is sitting right around the midline of the Bollinger Bands, suggesting a period of cooling after the rally from June’s sub-$3,200 levels.

Key technical levels to watch:

• Immediate resistance sits near $4,350–$4,400, aligned with recent failed breakout candles.
• The upper Bollinger Band around $4,860 is the next bullish target if momentum reignites.
• Strong support sits around $4,100, with deeper protection at $3,650 if the correction extends.

The fact that ETH is holding above the breakout zone around $4,000 shows buyers are still in control, but the pace has slowed.

Will ETH Price Crash or Hold Steady?

Short-term risks are clear. If Powell hints at staying hawkish and inflation data runs hot, risk assets could sell off. That scenario might drag ETH back toward the $4,100–$3,650 support zone. However, this doesn’t look like a crash setup yet. ETH is still in an uptrend, with higher lows and higher highs intact.

A true crash would require both macro tightening and technical breakdown below $3,650. That level is the line in the sand for bulls. As long as ETH stays above it, pullbacks look more like healthy corrections within a broader bullish cycle.

Ethereum Price Prediction: The Balancing Act Ahead

Ethereum’s next 30 days are less about on-chain activity and more about how the Fed’s balancing act plays out. If Powell hints at future easing, ETH could retest $4,800 and potentially aim for $5,200. If he stresses inflation risks and avoids signaling cuts, ETH may spend September grinding sideways or dipping lower.

Either way, ETH is unlikely to crash outright unless macro shocks line up with a technical breakdown. For now, the market remains cautiously bullish, watching Jackson Hole for clues.

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