Ethereum Price Cools Ahead of FOMC Decision Amid Caution

Ethereum's price has cooled off ahead of the Federal Open Market Committee (FOMC) decision on interest rates, with the cryptocurrency hovering near $1,900. On-chain data suggests that recent recovery sentiment has calmed down.

The Coinbase Premium Index dropped from -0.036 to -0.098 over the past week, indicating a decline in US sentiment across ETH markets in exchanges.

However, US spot ETH exchange-traded funds (ETFs) have continued their recovery, with net inflows totaling $103.9 million last week and $9.23 million on Monday.

Investors are distributing near break-even prices ahead of the FOMC decision, which has a 30% chance of a rate hike. This is increasing cautious sentiment across the market, with investors potentially moving to the sidelines until the outcome of tomorrow's meeting is known.