Ethereum Stuck Below $2,000 as Oil Prices Surge and Rate Hike Fears Grow
Ethereum's price has struggled to break above $2,000 as rising oil prices and rate hike concerns weigh on the market. Despite continued spot ETF inflows, Ethereum's price has remained below $1,955, a level it has repeatedly failed to breach.
The recent surge in oil prices has pushed West Texas Intermediate above $90 a barrel, raising concerns about regional supplies and potentially feeding inflation. This has led to increased expectations of a September rate hike by the Federal Reserve, with the probability rising to 79% from 68% per data from the CME FedWatch tool.
BitMEX's planned shutdown on September 23 has also added uncertainty to the market, as position transfers and forced closures could temporarily reduce liquidity or move leverage to rival exchanges. However, analysts note that Ethereum's global perpetual market will not close, with other venues such as Binance, Bybit, OKX operating larger derivatives businesses.
According to analyst Ted Pillows, spot-market demand has protected the recovery's main support zone, and Ethereum could begin its next move up in a few days. The 4-hour chart shows $ETH compressing beneath $1,955.40 while holding an ascending trendline drawn from the June 26 low.