Ethereum Price Fights for $2,400 Support Amid Fed Rate Hike

The Ethereum price hovered around $2,445 on Thursday after briefly dipping below the closely watched $2,400 support zone. The token's recovery followed sharp volatility triggered by tighter monetary policy, ETF withdrawals, and regulatory uncertainty.

The Federal Open Market Committee raised its benchmark rate by 25 basis points to a target range of 3.75%, 4.00%, marking the first increase since 2023. Higher rates are likely to stress Ethereum as higher Treasury yields decline demand for assets with higher volatility.

Regulatory uncertainty also increased after the Senate rejected the CLARITY Act's procedural motion by 49-50, leaving lawmakers far short of advancing comprehensive digital asset market rules. Democrats cited unresolved ethics concerns, while three Republicans opposed the motion, deepening doubts about passage this year.