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Ethereum’s price eased as demand for the token diminished.
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Attention turns to the upcoming Federal Reserve interest rate decision.
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Ethereum options are set to expire on Friday, adding potential volatility.
Ethereum price slipped to its lowest level since July 7, retreating to about $1,847 from this month’s high near $2,025. That decline places ETH roughly 15% below its year-to-date peak and signals a corrective phase as market momentum cools.
Fed decision and options expiry
Two key catalysts could influence Ethereum’s price this week. First is the Federal Reserve’s interest rate decision. The Fed begins its two-day policy meeting on Tuesday and will announce its decision on Wednesday.
The timing is significant: U.S. economic indicators point to a slowing growth pace. Recent data showed the manufacturing PMI at 49, indicating contraction in the sector, while the services PMI eased to 52.4. At the same time, inflation has continued its downward trend, with the consumer price index falling to 3.0% in June from a pandemic-era peak of 9.1%.
Given that inflation is moving toward the Fed’s 2.0% target, markets expect the central bank to raise rates by 25 basis points at this meeting and then likely pause further hikes. Policymakers are balancing the risk that additional rate increases could tip the economy into a sharper slowdown, or a “hard landing.”
The second catalyst is options expiry. Coinglass data shows there are over 2,206,619 ETH call contracts and 755,222 puts outstanding in the options market. Historically, options expiration events tend to increase short-term volatility in Ethereum as positions are rolled, closed, or exercised.
Ethereum price outlook
Technical indicators on the daily chart point to recent selling pressure. ETH has fallen below an important resistance near $2,025—the high posted on July 14—which also marked the upper boundary of the ascending channel. In addition, the price has dipped slightly beneath the 25-day and 50-day moving averages.
These developments suggest the downside may continue, with sellers targeting the next support zone around $1,800. Conversely, a sustained move above $1,900 would challenge this bearish outlook and could signal renewed buying interest.
How to buy Ethereum
If you plan to buy Ethereum, choose a reputable exchange or broker that supports ETH trading and offers strong security measures, clear fee structures, and regulatory compliance. Open an account, complete any required identity verification, deposit fiat or cryptocurrency, and place a buy order at market or using a limit order for a specific price. Consider using hardware wallets or other cold storage solutions to secure long-term holdings and follow best practices for private key management.