Ethereum (ETH) has made a notable ascent, rising approximately 1% to trade above $2,350 on Wednesday, following the Federal Reserve’s decision to maintain interest rates unchanged. The Federal Open Market Committee voted 10-2 to hold rates steady in the range of 3.75-4.00%, a move that has resonated positively within the crypto markets.
The Fed’s statement highlighted that economic activity continues to grow at a robust pace, even amidst heightened geopolitical uncertainties. Inflation remains a key concern, and the central bank indicated it will closely monitor incoming economic data for future decisions.
Market participants had largely anticipated this hold, with the CME FedWatch tool suggesting a probability of over 90% for this outcome. Investors are now turning their attention to the upcoming Personal Consumption Expenditures (PCE) report, which is the Fed’s preferred inflation gauge.
US Investors Keep Selling Ethereum
In a contrasting trend, US investors appear to be offloading ETH. The Coinbase Premium Index, which tracks the price difference between Coinbase Pro and Binance, fell to -0.181 on Monday, marking its lowest level since February. Although the index saw a slight recovery to -0.142 on Tuesday, it has remained in negative territory since early September, indicating a bearish sentiment among US traders.
Additionally, US spot ETH exchange-traded funds (ETFs) recorded significant outflows, totaling $60.2 million on Tuesday alone. Should this trend persist, October could become the worst month for these ETFs since their inception in July 2024.
Analyst Ted Pillows noted that ETH is currently positioned at a critical resistance zone. He emphasized that a reclaim of the $2,400 level would serve as a significant bullish indicator for the asset.
Meanwhile, data from Coinglass showed a staggering $43.1 million in ETH liquidations within a 24-hour window, with short positions accounting for $36 million of that total, reflecting the ongoing volatility in the market.
ETH Price Levels to Watch
As of Thursday, ETH has successfully bounced off the 200-day exponential moving average (EMA) at $2,316 and is now testing resistance at $2,355, with the 100-day EMA at $2,362 providing additional pressure. A continued upward movement could target $2,411, with further resistance levels at the 20-day and 50-day EMAs, positioned at $2,424 and $2,450, respectively.
On the downside, the 200-day EMA remains a crucial support level, with additional support at $2,256, $2,204, and $2,107. The Relative Strength Index (RSI) currently stands at 39, while the Stochastic indicator is at 33, suggesting potential bearish momentum.
FXEmpire analyst Alejandro Arrieche pointed out that historical trends suggest a possible decline to $1,970, drawing parallels with price movements leading up to the Pectra upgrade in May 2025. A decisive break above the $2,800 mark could confirm an upward trend, with a target set at $4,000.
As the market adjusts to the Fed’s recent announcements and investors weigh their options, all eyes will be on Ethereum’s performance in the days to come.
