Ethereum Tests $2,400 Support Amid Outflows and Rate Hike
Ethereum recently hovered near $2,445 after briefly falling below the closely watched $2,400 support zone during a volatile trading session. According to CoinGape, the broader digital asset market experienced sharp fluctuations following tighter monetary policy measures, exchange-traded fund withdrawals, and regulatory headwinds in Washington.
During the session, Ethereum touched an intraday low near $2,372 before buyers stepped in to push the asset back above $2,400. Other major digital assets also moved during the session, with Bitcoin trading near $76,845, XRP changing hands around $1.31, and Solana trading near $100.88. Analysts on short-term trading desks noted that renewed institutional selling and higher borrowing costs continue to pose challenges to a sustained recovery.
The market volatility followed a decision by the Federal Open Market Committee to raise its benchmark interest rate by 25 basis points. The unanimous move lifted the target federal funds rate range to 3.75% and 4.00%, marking the first rate increase since 2023. Federal officials cited persistent inflation, robust consumer spending, stable employment growth, and strong business investment as the primary factors behind the monetary tightening.
Based on reporting by coingape.com.
