.jpg)
Ethereum price fell to a critical support level as the cryptocurrency saw a sharp decline following the Federal Reserve’s hawkish interest rate announcement.
Ethereum (Ethereum) to $3,540, marking a 10% decline from its peak reached earlier this week. This decline coincided with the selling of other coins such as Bitcoin (Bitcoin) and Solana (Sol).
Despite the price decline, Ethereum’s fundamentals remain strong. Notably, Ethereum ETFs have seen steady inflows, now totaling more than $2.46 billion. These flows have increased for 18 consecutive days, reflecting increased interest from investors.
Ethereum ETFs These funds are gaining momentum as investors anticipate that the Securities and Exchange Commission (SEC) will soon allow ownership within these funds. For now, the lack of staking options will likely prevent some institutional investors from fully embracing these ETFs.
Funds owned by companies such as Grayscale, Blackrock, Fidelity, Bitwise, and VanEck are the largest holders of Ethereum.
Meanwhile, the number of ETH tokens continues to rise. It’s over now 54.7 million ETH tokensnow powered by a growing base of over 206,000 unique stakeholders. This trend underscores the long-term bullish sentiment among investors who plan to hold their positions in ETH.
Ethereum remains the largest player in the blockchain industry, with the total value held in its decentralized finance ecosystem rising to over $73.7 billion. This money is much higher than most other chains like Solana, Base, and Arbitrum combined.
ETH fell after the Federal Reserve cut interest rates and maintained its hawkish tone. It is now expected to cut interest rates twice instead of four in 2025. Cryptocurrencies and other risky assets do well when the Fed adopts a dovish tone.
Ethereum price analysis
The daily chart of ETH reveals a sharp reversal after the price reached $4,090, a critical resistance level. This level corresponds to the highs of December 6 and March 11, as well as the severe overshoot level on the Murree Math lines.
Ethereum formed a bearish double-top pattern at this resistance, with the neckline set at $3,526. This pattern indicates potential further declines, with ETH potentially testing the key support and resistance pivot point at $3,125. Further gains will be confirmed if Ethereum rises above the resistance at $4,090.
