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Ethereum traders are watching the United States Federal Reserve. It is preparing to announce its next policy decision on interest rates.
The conclusion of the Federal Open Market Committee (FOMC) meeting is scheduled for September 17. The cryptocurrency has shown a rising pattern after the last three Fed meetings.
This has drawn the attention of traders and analysts who believe a rate cut could push Ethereum prices higher again.
Ethereum Moves Around FOMC Meetings
When writing, Ethereum is the second-largest cryptocurrency in terms of market value. It was trading at $4,510.65, down 2.08% in the past 24 hours. Its total market capitalization stands at $544.45 Billion.
Ethereum’s daily trading volume is currently pegged at $36.91 billion, reflecting a 20.05% change. Furthermore, analysts pointed out that Ethereum has reacted positively to past Fed meetings. Crypto Rover noted that the asset has pumped after the last three FOMC sessions.
The market expects a similar trend if the Fed confirms a rate cut. The logic is simple. When interest rates are lower, returns from traditional banking options also fall.
Investors then seek higher yields, and assets like cryptocurrencies become more appealing. A chart shared by market commentators shows Ethereum bouncing from a support zone and retesting old resistance levels.
Traders view this retest as a possible signal of strength. Some investors are preparing to buy dips, expecting gains in a bull market. In addition, many market participants stress that past moves cannot guarantee the same outcome in the future.
Traders Mark Key Price Levels
Market analysts have outlined price ranges to watch. Gem Insider observes that Ethereum rose sharply after touching a support zone.
He believes the coin is now forming a base at levels that once acted as resistance. This could provide stability for further gains.
Another trader, Deftsuo, explained that Ethereum should not exceed $4,450. He warns that a drop under this level may weaken the bullish case.
He pointed to $4,675 to $4,700 as a possible short-term bounce target. Deftsuo, like Tom Lee, suggested that $5,000 could be reached later. This may occur given the tendency of markets to test round numbers.
According to Deftsuo, the market has recently seen strong sell pressure. This may be linked to caution ahead of the Fed announcement.
He added that if the rate cut is confirmed, the pressure could ease, and prices may swing higher. However, traders remain cautious because no outcome is certain until the decision is announced.
Market Waits for Fed Signal
It is worth mentioning that the expectation of a rate cut is at the center of current discussions. Lower rates could make cryptocurrencies more attractive, but analysts warn that other factors also matter.
Bitcoin’s price performance often sets the tone for the broader market. In addition, new regulations or changes in global economic conditions can alter price direction. Scholars and commentators note that historical patterns do not guide the future.
While Ethereum has moved higher after the last three Fed meetings, the same result is not guaranteed. Investors are aware of this and are preparing for different scenarios.
Currently, the market is quiet. Trading volumes show activity, but large moves are being held back as participants wait for clarity. Ethereum holders are watching for the official news before making major decisions.
If the Fed cuts rates on September 17, history suggests another Ethereum pump could occur. The size of such a move, however, is difficult to predict. Traders will seek confirmation from the Fed announcement and how the broader crypto market responds.
