Ethereum is showing modest growth as the FOMC meeting approaches, which may trigger significant price volatility.
Current Ethereum Price Trends
Ethereum's network activity has been on a decline, with daily active addresses and new wallet creations hitting yearly lows. This decrease in on-chain engagement has led to reduced transaction fees and increased inflationary pressures, adding to bearish sentiment in the market. Analysts warn that if Ethereum's price dips below the $1,900 support level, it could trigger liquidation from long-term holders, accelerating further price declines.
FOMC Meeting's Potential Impact on Ethereum Price
The Federal Open Market Committee (FOMC) meeting is expected to deliver key insights into U.S. monetary policy, particularly concerning interest rates and inflation control. A hawkish stance could strengthen the U.S. dollar, leading to downward pressure on risk assets like Ethereum. Conversely, a dovish approach might ease market fears, allowing ETH to hold or even recover.
Revised Ethereum Price Prediction
Standard Chartered recently revised its Ethereum price target for 2025 from $10,000 to $4,000, citing increased competition from Layer-2 solutions like Coinbase's Base. However, these predictions could shift dramatically based on the upcoming FOMC decision. If stricter policies are announced, bearish scenarios could dominate, potentially pushing ETH toward lower support levels.
Ethereum's price is at a pivotal point. The upcoming FOMC meeting could determine whether ETH sustains its price above the $1,900 mark or risks a deeper fall. Investors are advised to stay cautious and closely monitor the FOMC's announcements and Ethereum's subsequent price reactions.
