Ethereum Defies Hawkish Fed, Holds Above $2,370 Support Level
Ethereum defied expectations by holding steady at $2,444.61 despite a hawkish Federal Reserve and significant outflows from U.S. spot Ethereum ETFs. The central bank raised interest rates by 25 basis points to 3.75-4.00% on September 16, with 12 of 18 FOMC participants projecting one additional rate hike this year and four expecting two more increases.
The Fed also increased its 2026 PCE inflation forecast to 3.7% from 3.6%, with the core PCE projection rising to 3.4% from 3.3%. Meanwhile, the GDP growth forecast improved to 2.3% from 2.2%. Notably, the median policy-rate projection for the end of 2029 stands at 3.6%, indicating a more restrictive policy path.
U.S. spot Ethereum ETFs recorded $224.1 million in net outflows on September 16, but ETH still managed to maintain its support level at $2,370. However, this resilience may be tested by the difficult macroeconomic and geopolitical backdrop, which keeps the bearish scenario from previous analysis in play.
A break below $2,370 would increase the likelihood of a decline towards $2,200, where the 50-day SMA is located. Conversely, a sustained move above $2,550 would invalidate this scenario and suggest that ETH's price resilience may be more durable than expected.