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Ethereum Price Forecast: ETH plunges 6% following Fed rate decision, eyes a bounce at the $3,550 level

Author: Content Editor
Ethereum (ETH) experienced a 6% drop in price after the Federal Reserve hinted at reducing its rate cut frequency in 2025. This news caused ETH's Weighted Sentiment to reach lows not seen since December 2023. The decline in price resulted in $102 million worth of ETH futures liquidations in the past 24 hours. Despite the negative sentiment, ETH has historically bounced back when the Weighted Sentiment dips, suggesting the potential for a recovery. Long-term ETH holders have shown conviction throughout the year, with their collective balance reaching 110 million ETH, indicating a bias toward accumulation. Ethereum ETFs also recorded net inflows of $144.7 million, maintaining a positive trend for seventeen consecutive days. ETH faces resistance at $4,093, but a successful move above this level could lead to a rally toward the all-time high resistance at $4,868. On the other hand, a breach of the $3,550 support level could result in a drop toward the support zone of $2,800 to $3,000. Technical indicators suggest bullish momentum but also indicate a potential price correction.

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