Ethereum is trading near $2,500, up about 2% over the past 24 hours, as the broader cryptocurrency market continues to recover following the Federal Reserve's latest rate decision. The digital asset rebounded from a low of $2,370 on Wednesday, with traders seemingly viewing the rate increase as largely priced in.
The Fed's decision, rather than triggering a 'sell the news' decline, produced a counterintuitive recovery across crypto markets. According to CME FedWatch, markets now price in nearly a 90% chance of at least one additional rate hike by the December meeting.
ETF outflows persist
Despite the price rebound, institutional demand for US spot Ethereum ETFs has weakened. Investors pulled a combined $405.7 million from these products over the last three days, keeping monthly net inflows well below August levels. This suggests some investors are reducing exposure, possibly due to concerns about further rate hikes, which make risk assets less attractive relative to cash and government bonds.
However, Ethereum's post-meeting recovery indicates that bearish positioning may have been excessive once the anticipated hike was confirmed. The market rally also comes as the Bank of Japan raised its benchmark interest rate by 25 basis points to 1.25% on Friday, its highest level in 31 years, as policymakers respond to persistent inflation and yen weakness.
Volume crossover could signal rally
Ethereum's trading volume is approaching a signal that has preceded several major rallies. A bullish crossover occurs when the seven-day moving average of volume rises above its 30-day average. Data from Santiment shows the gap between these averages has narrowed considerably. The last such crossover was in July 2025, after which ETH advanced from roughly $3,300 to $4,750. While not a guarantee, rising volume alongside price recovery often indicates strengthening participation and demand.
Bull flag pattern points higher
On the daily chart, Ethereum continues to display a potential bull flag after buyers defended the $2,400 support level. A similar structure formed during the April-May consolidation last year before ETH reached a record high. For the pattern to confirm, Ethereum needs to break decisively above the flag's upper boundary near $2,550. A successful breakout could open the door to approximately $3,300 over the following weeks.
The Relative Strength Index (RSI) remains above 55, indicating that bullish momentum has not disappeared. However, failure to clear $2,550 would leave Ethereum vulnerable to another test of $2,400. A stronger-than-expected US dollar response to higher rates could deepen the pullback and potentially send ETH toward its 200-day exponential moving average.
As the market digests the Fed's move and the Bank of Japan's hike, traders are watching key levels. For more on the broader market reaction, see the Dow's rebound after the Fed's hike and Ethereum's support at $2,400.
This article is for informational purposes only and does not constitute financial advice.
