Key takeaways
- Ether lost about 2% in the past 24 hours and is trading below $4,000.
- The drop followed the Federal Open Market Committee (FOMC) announcement.
Ether falls below $4,000 after FOMC announcement
Ether, the second-largest cryptocurrency by market capitalization, turned bearish after a roughly 2% decline over the past 24 hours. Prices briefly touched the $3,800 area before moving back toward the $4,000 level.
Selling pressure intensified after the FOMC meeting, in which the Federal Reserve reduced its policy rate by 25 basis points. Fed Chair Jerome Powell also confirmed that quantitative tightening will end on December 1. That decision means the Fed will stop actively shrinking its balance sheet by selling assets into the market, a process that can depress asset prices and put upward pressure on interest rates. Given this guidance, another rate cut at the Fed’s December meeting now appears unlikely.
Ethereum’s Fusaka upgrade—designed to boost scalability and enhance security—successfully launched on the Hoodi testnet on Tuesday. Hoodi is the third and final public testnet before the mainnet rollout. Despite the successful testnet launch, the upgrade did not produce an immediate price lift for ETH amid broader crypto market volatility.
ETH may rebound above $4,200 soon
On the 4-hour chart, ETH/USD remains in a bearish phase but is showing early signs of recovery after the recent pullback. Trading sits around $3,939 per coin and could move higher if momentum shifts in favor of buyers.
The technical indicators are bearish overall but hint at potential stabilization. The 4-hour RSI near 46 suggests selling pressure is easing and gives room for bulls to attempt a push higher in the coming hours and days. The MACD remains in negative territory after delivering a sell signal on Wednesday, but a convergence or crossover could accelerate a recovery.
If buyers maintain control, ETH could retake the resistance zone near $4,232 over the short term. A stronger advance beyond that level would open the way toward the 4-hour illiquid price (ILQ) area around $4,409. Conversely, failure to break above roughly $4,200 soon could prompt a further test of the recent low near $3,800.