Peter Smith
Ethereum's recent price action tells a tale of two timeframes. While the second-largest cryptocurrency has completely erased the gains from Federal Reserve Chair Jerome Powell's market-moving Jackson Hole speech, analysts remain convinced that the broader bull cycle is far from over. This complete reversal of what traders dubbed the "Powell Candle" has sparked debate about near-term weakness versus long-term potential.
ETH Price Action: Powell Candle Fully Retraced
Ethereum has pulled back to roughly $4,352, wiping out the entire rally that followed Powell's dovish comments at Jackson Hole. This kind of complete reversal is catching traders' attention for all the wrong reasons.
Crypto analyst @TedPillows pointed out that healthy markets don't usually see such dramatic reversals. While the broader market cycle still looks positive, ETH is clearly dealing with some headwinds that could keep prices under pressure in the coming weeks.
Short-Term Bearishness, Long-Term Optimism
The pullback shows just how sensitive Ethereum remains to macro sentiment shifts. Powell's initial remarks got risk-on traders excited, but the quick about-face suggests the market is still walking on eggshells while waiting for clearer economic signals and Fed guidance.
That confidence stems from Ethereum's growing role in DeFi, staking rewards, and increasing institutional adoption. Sure, the price might swing around in the short term, but the underlying fundamentals keep pointing higher.
Right now, Ethereum is hanging around the $4,280–$4,350 support zone. If this level holds and macro conditions settle down, ETH could bounce back hard and get back on track with its bull run. But if support breaks, we might see more selling before the next major move higher.
For those playing the long game, the roadmap hasn't changed: Ethereum is still on track to challenge $10,000 later this cycle, which means current weakness is likely just a temporary speed bump.
Peter Smith
