Ethereum Eyes $3,400 as Fed Rate Hike Odds Decline

Ethereum's price has been consolidating after a 2.8% rebound to $2,730 following the release of the Federal Reserve's preferred inflation measure.

The August Personal Consumption Expenditures (PCE) price index showed annual inflation of 3.4%, below the consensus cited in the report.

This easing of inflation concerns has led to a decrease in rate-hike odds, with the probability of a 25-basis-point increase at the next Federal Reserve meeting falling from 68% to 37%.

The improved outlook is also reflected in on-chain indicators, such as the Market Value to Realized Value (MVRV) indicator moving above zero for the first time since July 2025.