Ethereum Price Holds Near $2.4K Despite ETF Outflows and Fed Hike

Ethereum price remained relatively stable on Sept. 17 despite weakness across U.S. equities and another large round of Ether ETF outflows. ETH traded around $2,400-$2,425 after the Federal Reserve raised interest rates by 25 basis points.

The token has spent much of the past several weeks consolidating rather than extending its earlier rally. That leaves traders watching whether the current structure develops into another breakout or breaks lower under tighter monetary conditions.

Ethereum Price Steady as Fed Hikes Interest Rates

ETH price has moved sideways this week, even after the US stock market slumped after the Federal Reserve hiked interest rates. Officials decided to hike by 0.25% to between 3.75% and 4%, with Kevin Warsh hinting that the bank will increase again.

The Fed judged that, while the economy was doing relatively well, inflation is still a challenge. Recent data confirmed that inflation has remained above the 2% target for over five years and this trend will continue as energy prices jump. Brent and the West Texas Intermediate (WTI) have jumped to above $100 this month.

Ethereum’s price action after the rate decision was notable because the US stock market dived, with the Dow Jones falling by over 700 points.

ETH ETF Inflows Have Stalled

Meanwhile, American investors have started to sell some of their ETH ETFs. Data show that these funds experienced over $224 million in outflows on Wednesday, following a loss of $141 million the day before. In total, these funds have added $85 million this year, much lower than the $1.85 billion they added last month.

The outflows have been spread across many of the funds. BlackRock’s ETHA ETF had over $110 million in outflows on Wednesday, while Fidelity’s FETH lost over $55 million in assets on the same day. Grayscale’s ETHE, BlackRock’s ETHB, VanEck’s ETHV, and 21Shares TETH lost over $10 million in assets on Thursday.

Ethereum ETF outflows are signs that demand among investors is falling this week, possibly as investors start booking profits.

At the same time, BitMine, the biggest Ethereum holder, is about to end its ETH purchases. It has accumulated over 5.9 million coins and has less than 30,000 coins to buy in its goal to own 5% of those in circulation. By ending purchases, one of the largest buyers will become a passive investor.

Ethereum price is also steady despite the CLARITY Act setback in the US Senate this week. Senators failed to pass the bill in a procedural vote, with Democrats arguing that it did not go further enough to address their ethical concerns.

Democrats added the ethical clauses after President Donald Trump announced that he had made over $2.2 billion in revenue last year. Most of these funds came from his crypto ventures, including World Liberty Financial and TRUMP memecoin.

Ethereum is exposed to the bill because its chain powers some of the top players in the industry, including stablecoins like USDT and USDC.

Ethereum Price Has Formed Bullish Patterns

The ongoing ETH price consolidation could be the calm before the storm, ahead of an eventual rebound. It has slowly formed a bullish flag pattern, a common continuation sign in technical analysis. It is now in the flag section.

The coin has also remained above the 100-day moving average, which coincides with the Strong, Pivot, Reverse line of the Murrey Math Lines tool. Ethereum has also formed a golden cross pattern, which consists of a crossover between the 50- and 200-day moving averages.

Therefore, the token is likely to see a bullish breakout, potentially reaching the important resistance level of $3,000.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and technical patterns or analyst targets do not guarantee future price performance.