Ether (ETH-USD) finally broke through its three-year ceiling Friday, racing past the $4,866 mark it set in 2021. The timing wasn't random it happened just as Fed Chair Jerome Powell signaled rate cuts could be back on the table.

That hint flipped the market mood in a flash. In one hour alone, traders saw $120 million in ether shorts wiped out, according to CoinGlass. The forced buybacks poured gasoline on the rally, sending prices straight through the old record.

Bitcoin (BTC-USD) caught some of the glow too, climbing 4% to about $117,000. But the real story was ether, which has now more than doubled in just two months and is outpacing bitcoin by a wide margin.

Stocks tied to the crypto trade lit up as well. Bitmine Immersion and SharpLink Gaming each gained more than 12%. Solana-focused DeFi Development popped 21%. Not everyone won ETHZilla, backed by Peter Thiel, plunged 30% after putting nearly 75 million shares up for resale.

Bigger picture: Ethereum isn't just running on hype. Stablecoins most of which sit on its rails now account for roughly 40% of blockchain fees. That's what has institutions circling. Fundstrat's Tom Lee summed it up: Ether is the biggest macro trade over the next 10 to 15 years.

Investors now turn to September's Fed meeting to see if Powell delivers on the hint. If he does, it could keep crypto's momentum alive and keep ether in the driver's seat.