Ethereum Clings to $2,360 Support Ahead of FOMC Decision
ETH got hit by a failed crypto bill and now faces the Fed. Here's what moves the price next.
Ethereum is hanging on for dear life at $2,360 — a level that became the flashpoint after the Clarity Act cloture vote collapsed in the Senate. That bill was supposed to bring real structure to crypto markets. It didn't pass. With Congress expected to grow more divided after midterms, don't hold your breath for comprehensive crypto legislation to resurface this year. The regulatory whiff hit ETH hard and fast.
Now the tape shifts to the Fed. The FOMC decision drops today, and the consensus is locked in for a 25 basis point rate hike, with a couple of dissenting voices expected to push for no change at all. But the real action is in the Dot Plot. The Fed is projected to signal two more hikes — one in 2026, one in 2027 — which would actually be less aggressive than the three additional hikes markets are currently pricing in. That gap is your trade.
Read more Mystery Trader Drops $122M Bet Before Fed Rate Decision →
If the Dot Plot comes in at three or more hikes, that's a hawkish surprise. Bitcoin takes the first hit, ETH follows. If the Fed signals just one or two more hikes, markets will read that as dovish relief — and Ethereum could bounce hard off that $2,360 floor. Fed Chair Warsh isn't expected to offer fresh forward guidance; he'll likely echo the Jackson Hole message and leave traders to interpret the dots themselves.
Don't sleep on the Middle East either. Oil is still above $100, keeping inflation fears sticky and giving the Fed cover to stay hawkish. Any credible de-escalation in the region could pull oil lower, trigger a dovish repricing across assets, and hand Ethereum a real catalyst to rally. Until that happens, macro headwinds are capping upside. You need either a dovish Fed or Middle East calm — ideally both — to break ETH out of this range.
Continue reading at Forexlive.
