Ethereum price forecast: ETH may become the biggest winner after FOMC meeting

Ethereum fell slightly today as the market waits for the Federal Reserve's decision.

Ethereum fell slightly today, down about 1% to US$1,894. Trading volume also fell 16%, and markets were waiting for an important announcement from the Federal Reserve later.

Despite the pause, large amounts of money are still flowing into ETH. BlackRock's customers sold about $60 million in Bitcoin ETF shares, but instead invested more than $20 million in Ethereum. This shows the trend of some smart funds-they are leaning towards smart contracts and pledges.

In addition, Lido is migrating approximately 8 million pledged ETH into a new validator architecture specifically designed for Ethereum's latest upgrades.

There are only a few hours left before the Federal Reserve's decision. Everyone is paying attention to whether the wording is friendly, because if so, it may become the catalyst for Ethereum prices to launch the next wave.

Ethereum News: Analysts say ETH is currently the most undervalued cryptocurrency

Cryptocurrency analyst Michaël van de Poppe believes that even if ETH prices are below US$2,000, it is still the most undervalued asset in the crypto space. His point is that five years later, people may look back at today's prices and regret not buying more. He pointed out that the CLARITY bill could help clear up regulatory chaos, which would change everything.

He relied on a chart comparing ETH and Bitcoin as support. In the past four years, ETH prices have continued to weaken relative to BTC, showing a steady decline. But this trend has been broken. ETH has finally broken through the downtrend line that has suppressed it since 2022. The price then pulled back, tested the same level and rebounded. Traders see this as a positive sign-what used to be a top may have become a new bottom.

If this support level is maintained, Ethereum may continue to outperform Bitcoin in the coming months. Especially as the rules of the game become increasingly clear and funds are beginning to flow into infrastructure projects.

Ethereum adoption rate reaches an important milestone

Ethereum's online activity continues to increase, far exceeding price performance. Sanitation data shows that the number of non-empty wallets on the Internet has exceeded 200 million, setting a record high. During the same period, the number of USDC non-empty wallets on XRP Ledger and Ethereum exceeded 8 million, and the number of holding addresses on Chainlink also exceeded 900,000.

Network growth is also supported by one of Ethereum's largest pledge providers. Lido is migrating more than 265,000 validators to its Curated Module v2 and more than 8 million ETH (worth approximately US$16 billion) to Ethereum's new validator architecture.

(Previously reported: Ethereum, XRP and Chainlink all hit new milestones in the number of addresses held-Sanitation said that in the past two weeks, Ethereum's non-empty wallets exceeded 200 million for the first time. The USDC non-empty wallets on XRP Ledger and Ethereum both exceed 8 million. Chainlink……）

This upgrade has brought about major changes. The validator can now pledge up to 2,048 ETH, well above the previous limit of 32. Lido estimates that this could reduce the number of validators from about 880,000 to about 628,000. The burden on the network consensus layer will be reduced. But for ordinary users, Gas fees remain the same.

The network runs smoother. In addition, node operators receive better incentives through the ETH backed bond and penalty system to ensure that all parties behave in compliance.

Why the Fed meeting may become the biggest catalyst for Ethereum

The Fed affects the market. When interest rates are low or central banks speak friendly, money flows into risky assets, and cryptocurrencies are no exception.

If Kevin Warsh makes moderate remarks on inflation or hints that interest rates may be cut later this year, Ethereum may perform better than Bitcoin. Large investors have re-entered the pledge and smart contract space. Improved liquidity will only further drive this trend.

But if the Fed takes a tough stance, the dollar will usually strengthen, bond yields will rise, and cryptocurrencies may come under pressure. In this case, it may be difficult for Ethereum prices to break through key levels until the situation becomes clear.

Ethereum Price Forecast: Key Levels to Focus on After the Federal Reserve Decision

We looked at the ETH/USD chart and despite today's decline, Ethereum is still in a short-term uptrend. Prices held steady around $1,888. The RSI is 46, which is in the neutral region, and has previously fallen back from overbought conditions. The ultimate oscillator is around 59, indicating that buyers have not yet given up completely.

Ethereum prices have a solid bottom between $1,860 and $1,880. In the past two weeks, this price range has attracted buyers many times. If this support is maintained and the Fed sends a friendly signal, we may see ETH rebound to around $1,960. After that,$2,000 will be the next key integer mark that everyone pays attention to.

But if the Fed takes a tough stance and ETH falls below $1,860, the next support range could be between $1,800 and $1,820.

Despite this, the overall outlook for Ethereum is more optimistic than it has been for some time. Its exchange rate against Bitcoin is strengthening, more people hold ETH in their wallets, and large investors continue to increase their holdings. Therefore, if the macroeconomic environment becomes more favorable, Ethereum may have more room for growth than Bitcoin in the long term.

Ethereum is entering today's Federal Reserve meeting with many positive factors. Big money is flowing in. Wallet address just hit a record of 200 million. Lido is completing one of the largest validator migrations in network history. Some analysts believe that ETH has finally broken its long-term downward trend against Bitcoin.

The Fed's decision will determine whether ETH prices hit $2,000 again or remain range-bound for some time. But no matter what the outcome is, the foundation of Ethereum is constantly being consolidated.

FAQs

Why did Ethereum prices fall before the Federal Reserve meeting?

Ethereum prices are under pressure as traders reduce risk ahead of the Federal Reserve's interest rate decision. Falling trading volumes and profit-taking are common phenomena before major macroeconomic events, and investors are waiting for future monetary policy clues before opening new positions.

Why do analysts think Ethereum is undervalued?

Some analysts believe that Ethereum is still undervalued because of its expanding role in smart contracts, pledges and tokenized assets. They also pointed to increased regulatory transparency, rising institutional interest, record number of wallets and Ethereum's breakthrough in Bitcoin as factors that could support long-term price increases.

Can Ethereum outperform Bitcoin after the Federal Reserve meeting?

If the Federal Reserve sends a dovish signal to improve liquidity and investors 'appetite for risky assets, Ethereum may outperform Bitcoin. Strong on-chain adoption, growing pledge activity and institutional capital inflows into Ethereum products may also help ETH achieve a larger gain than BTC under favorable market conditions.