Ethereum Price Eyes $2,500 as Rate Hike Fears Weigh on Market

Ethereum's price has been on an upswing, reaching as high as $2,667 on Friday, September 11th. However, just four days later, it underwent a 11.6% retracement, falling to $2,356. At the time of writing, Ethereum was trading at $2,495 and is once again approaching the local resistance zone of $2,530.

The recent rate hike decision has given investors reason to pause and reassess their bullish conviction. Further rate hikes to combat inflation could lead to a tightening of liquidity in the market, making risk-on market losses more likely.

According to Farside Investors' data, the past three trading days saw a cumulative $407.3 million in outflows from spot Ethereum ETFs, indicating short-term bearish pressure.