Ethereum (ETH) has gone down by 3% in the past 24 hours as the U.S. Federal Reserve is scheduled to make its interest rate decision later today.
Market analysts unanimously believe that the central bank will cut rates by 25 basis points. This would be the second cut of this year, while data from FedWatch shows that they expect a third cut in December.
Any changes to that roadmap may negatively impact the valuation of cryptocurrencies, especially altcoins like Ethereum (ETH).
President Donald Trump slapped the Asian country with a 100% tariff increase and derailed the beginning of altseason.
The Fed will analyze the impact of that decision in its assessment of how the country’s economy is faring. It could opt to delay the third cut to 2026. If that happens, we could expect a sharp drop in the price of ETH and other assets.
Meanwhile, if they stay on course and confirm a positive outlook, the odds favor the continuation of the latest recovery. Despite today’s setback, ETH maintains a positive year-to-date performance with gains of 20% thus far since the year started.
Ethereum Price Prediction: Long Liquidations Spike Ahead of Fed Meeting
However, in the past 24 hours, more than $300 million worth of crypto positions were liquidated. Market participants typically close positions ahead of interest rate decisions to protect themselves from extreme price swings.
Market sentiment remains a bit sour, but has recovered significantly in the past few days. The Fear and Greed Index climbed from a low of 25 to 42 at the time of writing, meaning that investors have shifted from a fearful to a neutral attitude.
Meanwhile, net inflows to exchange-traded funds (ETFs) since the week started have been positive. These vehicles have brought in nearly $400 million in just two days ahead of the Fed’s meeting. This reflects a growing appetite from investors every time ETH pulls back below $4,000.
The daily chart shows that the selling pressure increased at $4,200 for ETH, but the token has found support multiple times at $3,800 during the latest pullbacks, making this the key level to watch in case of a much deeper correction.
If all goes as planned, the stage seems set for a move toward the $4,700 area in the mid-term once the dust settles. The Relative Strength Index (RSI) sent a weak buy signal upon crossing above the 14-day moving average.
As long as the $3,800 area holds, the baseline Ethereum price prediction will be bullish. In contrast, a break below this area would risk a sharp drop toward $3,350 first and then to $2,700 if market conditions deteriorate.
Apart from top tokens, the most promising crypto presales typically deliver higher gains, as they tend to explode once top exchanges scoop up the token. Bitcoin Hyper ($HYPER), a layer-2 scaling protocol for Bitcoin, could be one of this cycle’s hidden gems, and here’s why.
Bitcoin Hyper ($HYPER) Raises $25M to Break the Chains and Scale Up BTCFi
BTC holders will get the chance to earn yield, stake, and lend their tokens safely with the help of Bitcoin Hyper ($HYPER).
This project leverages the efficiency of the Solana blockchain to launch a promising scaling solution. It creates the perfect environment for Bitcoin-powered decentralized apps (dApps), meme coins, and payment platforms.
Through the Hyper Bridge, BTC holders will be able to safely send their tokens to a designated wallet on the Bitcoin network and get the corresponding amount on the Hyper L2.
The project currently offers staking rewards of 47%, and the demand for $HYPER should rise once the protocol is adopted by top wallets and exchanges.
To buy $HYPER before the next price increase, simply head to the Bitcoin Hyper website and connect your favorite wallet. You could either swap USDT or ETH for this token or use a bank card to invest.
