Middle East Tensions and FOMC Loom Over Crypto Markets

Crypto markets are experiencing sideways trading due to the ongoing geopolitical tensions in the Middle East and the upcoming FOMC meeting by the Federal Reserve. Despite a temporary pause in US-Iran military exchanges, safe-haven demand remains strong, contributing to compressed risk appetite.

Ethereum (ETH) is hovering near its support band of $1,900-$2,000 while Solana (SOL) tests levels flagged as accumulation zones by analysts. Both assets have seen sharp declines from their recent highs, leading investors to seek alternative cryptocurrencies to buy.

According to the CME FedWatch Tool, rate-hike expectations have increased compared to earlier this month, which could suppress speculative flows in the crypto market. The Fed's July 28 decision is a key near-term catalyst for digital assets.