The price of Ethereum has been largely unchanged in recent days as investors wait for the Federal Reserve’s upcoming interest rate decision. The ETH token is trading at $2,805, slightly below this week’s high of $2,883. Market capitalization has fallen to roughly $340 billion, meaning investors have seen over $160 billion in value evaporate recently.
Ethereum April Review
April was a relatively quiet month for Ethereum. The biggest announcement was that developers postponed the network’s Merge from June to the third quarter. Analysts now expect the current Ethereum mainnet and the Beacon Chain to merge in August or September.
The delay disappointed many, but most analysts and participants view it as a prudent step given the significance of the upgrade. Past transitions in blockchain networks have sometimes been followed by major incidents, so exercising caution is understandable.
Meanwhile, like other chains, Ethereum experienced a decline in Total Value Locked (TVL). Over the past 30 days, TVL dropped by more than 11% to about $110 billion. Despite that decline, Ethereum increased its sector dominance to roughly 55% as competing chains fell further. For example, Solana and Fantom each declined by more than 25% over the same period.
Ethereum’s price action reflected broader market trends. In April the Nasdaq 100 fell by more than 18%, while U.S. bond yields continued to rise amid the sell-off. Bond yields generally move inversely to prices, and in April the yield curve inverted to its most pronounced level since 2007.
Those moves were largely driven by comments from Federal Reserve officials. In speeches and statements, leaders such as Jerome Powell and Mary Daly signaled that the Fed intends to raise rates further. Markets expect a 50 basis point rate hike and the start of quantitative tightening.
Ethereum Price Forecast
On the four-hour chart, ETH has been in a steady downtrend recently. The price has moved below the standard pivot point and the 25-period moving average. The Relative Strength Index has also slipped slightly below the neutral 50 level.
Given these indicators, a mild dip in the first half of May seems likely, followed by a recovery as the market prices in a restrictive Fed stance. A rebound toward $3,200 cannot be ruled out if risk appetite returns and selling pressure eases.
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