Ethereum (ETH) dropped by 3% in the past 24 hours as investors wait for the U.S. Federal Reserve’s latest interest rate decision.
Analysts expect the Fed to cut rates by 25 basis points, marking the second rate cut of 2025. According to data from FedWatch, a third cut could come in December — unless economic conditions force a delay into 2026.
A delay in the rate-cut cycle could hurt the broader cryptocurrency market, especially altcoins like Ethereum. On the other hand, if the Fed confirms a positive outlook, it may support Ethereum’s recovery trend.
Despite today’s dip, ETH remains up 20% year-to-date, showing steady growth through 2025.
Liquidations Rise Ahead of Fed Meeting
Over $300 million worth of crypto positions were liquidated in the past 24 hours. Traders often close positions before major economic announcements to avoid sudden price swings.
Market sentiment, however, is improving. The Fear and Greed Index has climbed from 25 to 42, signaling that investors are moving from fear toward a neutral stance.
Crypto exchange-traded funds (ETFs) have also recorded strong inflows. Nearly $400 million entered crypto ETFs this week, suggesting investors are buying ETH during dips below the $4,000 level.
Key Levels to Watch
Ethereum faces strong selling pressure around $4,200, but has found reliable support at $3,800. As long as ETH stays above that mark, analysts expect a potential mid-term move toward $4,700.
Technical indicators also show mild bullish momentum. The Relative Strength Index (RSI) has crossed above its 14-day average, signaling a weak buy trend.
If ETH falls below $3,800, prices could slide further to $3,350 or even $2,700 if market sentiment turns negative.
What’s Next for Ethereum
Ethereum’s next direction largely depends on the Federal Reserve’s comments and the broader economic outlook. If rate cuts continue as expected, the crypto market could regain momentum. But if the Fed delays further cuts, ETH may face short-term pressure before recovering later in the year.
