Ethereum price falls following Federal Reserve interest rate update
Ethereum took a bit of a tumble this week, with its price dropping down to $3,540, a 10% dip from its recent high. The Federal Reserve’s announcement about interest rates had an impact on not just Ethereum, but other cryptocurrencies like Bitcoin and Solana too.
Despite this drop, Ethereum is still going strong with some impressive fundamentals. It’s catching the eye of big institutional investors, especially through Ethereum Exchange-Traded Funds (ETFs), which have been seeing a lot of action lately with over $2.46 billion in inflows over the past 18 days.
Ethereum is still a major player in the blockchain world, with more than 54.7 million tokens staked and over 206,000 unique stakers. People seem to be holding onto their Ethereum for the long haul, showing some serious optimism. And let’s not forget about Ethereum’s Decentralized Finance (DeFi) ecosystem, which is flourishing with over $73.7 billion locked in total value, way ahead of the competition.
The recent dip in price is linked to the Federal Reserve’s decision to scale back its expected interest rate cuts for 2025 from four to just two. This shift to a more hawkish stance has put a bit of a damper on cryptocurrencies and other risky assets which usually do better under a more dovish approach. Ethereum’s price chart is showing a bearish pattern, and if it falls below the $3,526 support level, we might see further declines. On the bright side, if Ethereum manages to break through the $4,090 resistance level, we could see a nice rebound.