Ethereum Slips Below $2,500 Ahead of Fed Decision

Ethereum slipped below $2,500 as traders headed into a Federal Reserve week that now looks more hostile to risk assets than hopeful.

The token's weekend drop was not dramatic, but it's exactly why you should pay attention to it. Ethereum traded around the $2,500 line on Sunday, September 13, after failing to hold the momentum from a sharp move higher on September 11, when ETH pushed near the mid-$2,600s before sellers came back in.

The timing is awkward, as the Federal Open Market Committee starts its next meeting on Tuesday, September 15, and announces its decision on Wednesday, September 16. Futures markets were pricing an 85% chance of a quarter-point rate hike after stronger labor data and stubborn inflation readings.

Ethereum has already shown how nervous this trade is, rallying on ETF demand in the morning and giving it back before the weekend is done. U.S. spot Ether ETFs took in about $216 million on September 11, with BlackRock's ETHA pulling in roughly $149 million.