Ethereum Prices Dip 3.5% Amid Hawkish Fed Speech

The Ethereum price dropped by approximately 3.5% over the last 31 hours following a hawkish Federal Reserve speech by Kevin Warsh at the Jackson Hole event.

Warsh emphasized that PCE inflation was well above the 2% target, signaling a continued focus on tightening, which pushed short-term US yields and the dollar higher.

This led to a broad risk-off reaction, with Ethereum falling to around $2,444 from its earlier price, while Bitcoin dropped to around $77,800. The move was mirrored in other major cryptocurrencies and traditional assets like US equities and gold.

Ethereum had rallied about 27-35% from its mid-August range into the $2,450-2,550 area, encountering major resistance. This rally was fueled by aggressive spot demand, with U.S. spot Ethereum ETFs seeing their strongest single-day inflow in roughly 10 months.

The market backdrop around ETH contributed to the sharp move, with crypto metrics showing optimistic sentiment and high leverage making the market sensitive to shocks.