Key Takeaways
- ETH has experienced a 2% decline in the last 24 hours, dropping below $3,800.
- Growing institutional demand indicates the coin may soon reach $4,000.
ETH Drops Below $3,800 Ahead of FOMC Meeting
The cryptocurrency market is experiencing a downturn as investors await today’s Federal Open Market Committee (FOMC) meeting. Bitcoin has fallen below $119,000, with Ether down 2% over the last 24 hours but holding onto daily support at $3,730.
The U.S. Federal Reserve is expected to maintain interest rates during today’s session, potentially impacting Bitcoin and other major cryptocurrencies negatively. Nonetheless, ETH continues to stay above a crucial support level due to rising institutional demand.
Javier Rodriguez-Alarcón, the Chief Investment Officer at XBTO, noted in an email to CoinJournal that institutional interest in Ether remains strong. He stated:
“Institutional momentum for Ethereum accelerated last week, with record inflows into ETFs and the launch of major funds signaling a pivotal shift in crypto capital allocation. While Bitcoin has held relatively stable, the significant winner has been ETH, attracting both passive and active institutional money in search of yield and utility, rather than pure value storage.”
This week presents critical macroeconomic tests: the FOMC’s interest rate decision, Tuesday’s JOLTS job openings data, and July’s ADP employment figures all have the potential to significantly impact market trends as Bitcoin approaches the $120,000 threshold. ETH extended its rally last week, climbing by 3.6% and increasing its month-to-date gain to 55.9%. Following a sluggish start to the year, the cryptocurrency is now up 16.3% in 2025, marking a complete turnaround and a notable shift in investor sentiment.
ETH Aims for $4,000 If $3,730 Support Holds
The 4-hour chart for the ETH/USD pair shows a bearish trend due to poor market performance in recent days. Technical indicators remain negative, suggesting that bears are still in control.
As of press time, ETH is trading at $3,794 per coin. If the daily support at $3,730 holds, ETH may resume its upward rally targeting the psychological level of $4,000. The RSI at 55 is approaching neutral territory, indicating that bullish momentum is waning. Additionally, the MACD line is on the verge of entering bearish territory, suggesting a selling bias.
Conversely, should Ether face a correction and close below the daily support at $3,730, the bearish momentum could extend to the next support level at $3,500 in the coming hours.
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