Ethereum Bulls Eye $3,400 as Fed Decision Boosts Sentiment

Ethereum's price rebounded after the Federal Reserve's preferred inflation measure came in below expectations, easing concerns about another interest-rate increase.

The improvement in sentiment coincided with encouraging on-chain indicators and growing attention to Ethereum's upcoming Glamsterdam upgrade.

However, despite the positive reaction, analysts anticipate further consolidation, potentially including a retreat toward $2,500 before a sustained move higher.

A softer PCE data release reduced rate-hike expectations, with the probability of a 25-basis-point increase at the next Federal Reserve meeting falling from 68% to 37%.

For Ethereum, a less restrictive policy outlook could improve appetite for risk assets. Its initial rebound suggests traders welcomed the report, although a sustained recovery requires buying demand beyond the immediate reaction.