Ethereum gains 1% after Fed hold as Coinbase Premium stays negative

Ethereum price today: $2,350

• Ethereum edges above $2,350 after the Fed left interest rates unchanged at 3.75-4.00%.
• US selling pressure continues, with the Coinbase Premium Index reaching its lowest level since February.
• ETH bounced off the 200-day EMA and is testing the $2,355 resistance.

Ethereum (ETH) recovers slightly above $2,350 on Wednesday after the Federal Reserve (Fed) held interest rates steady.

ETH posts modest gains as Fed holds rates

The Federal Open Market Committee (FOMC) voted 10-2 to leave rates unchanged at 3.75-4.00%, highlighting that economic activity is growing at a strong pace despite increased geopolitical uncertainty. The Committee noted that inflation remains elevated, and it will assess incoming data to determine which policy stance will bring inflation to its 2% target. The decision follows September's 25-basis-point rate hike.

Markets have shifted focus to Thursday's Personal Consumption Expenditures (PCE) report, the Fed's preferred inflation metric.

ETH's immediate reaction was positive, rising by 1% above $2,350 even though markets had largely priced in the Fed's decision with over a 90% probability, per the CME FedWatch tool.

ETH remains pressured by risk-off US sentiment

More broadly, US investors continue to mount selling pressure on ETH.

The Coinbase Premium Index, which measures the difference between ETH prices on Coinbase Pro and Binance, fell to -0.181 on Monday, its lowest level since February, before rising slightly to -0.142 on Tuesday. The metric has remained in negative territory since early September, reflecting dominant selling pressure from US-based investors compared to other regions.

Similarly, US spot ETH exchange-traded funds (ETFs) continued to post outflows. The products recorded a second consecutive day of net outflows on Tuesday worth $60.2 million, according to SoSoValue data. If the outflows continue, ETH ETFs could record their worst month since launching in July 2024.

Ethereum technical outlook: ETH tests $2,355 after 200-day EMA bounce

Ethereum has seen $43.1 million in liquidations over the past 24 hours, led by $36 million in short liquidations, per Coinglass data.

The top altcoin bounced at the 200-day Exponential Moving Average (EMA) at $2,316 and is testing the $2,355 resistance, which is strengthened by the 100-day EMA at $2,362. A rise above will see ETH challenge the $2,411 horizontal level, followed by the 20-day and 50-day EMAs at $2,424 and $2,450, which it has to clear before facing the $2,548 key resistance.

On the downside, the 200-day EMA continues to hold as support, with $2,256, $2,204, and $2,107 providing additional cushion below.

The Relative Strength Index (RSI) and Stochastic eased from the downside to 39 and 33, respectively, after the latter reached oversold conditions.