Ethereum Price Holds $2,400 as Fed Hike, ETF Outflows Pressure ETH

Ethereum price recovered to around $2,445 on Thursday after briefly slipping below the critical $2,400 support level as tighter monetary policy, ETF outflows and U.S. regulatory uncertainty pressured the crypto market.

ETH fell to an intraday low near $2,372 before buyers stepped in, helping the cryptocurrency reclaim $2,400. Bitcoin traded near $76,845, XRP hovered around $1.31, while Solana advanced toward $100.88.

The latest volatility followed the Federal Reserve’s September meeting, where policymakers unanimously raised the benchmark interest rate by 25 basis points to a 3.75%–4.00% range. It marked the Fed’s first rate hike since 2023, with officials citing persistent inflation, resilient consumer spending, stable employment growth and strong business investment.

Higher interest rates and Treasury yields can pressure Ethereum and other risk assets by tightening financial conditions and reducing speculative liquidity. The Fed said future policy decisions will depend on incoming inflation, employment and economic data.

Crypto regulatory uncertainty also intensified after the U.S. Senate rejected a procedural motion on the CLARITY Act by a 49–50 vote. The measure required 60 votes to advance, creating further uncertainty over prospects for comprehensive U.S. digital asset market legislation this year.

Institutional flows added another headwind. U.S. spot Bitcoin ETFs recorded $296 million in net outflows on September 16, while spot Ethereum ETFs saw withdrawals of $224 million. Combined redemptions reached roughly $520 million. BlackRock’s ETHA posted the largest Ether ETF outflow at $110 million.

Ethereum’s next move could depend heavily on whether $2,400 holds. A sustained drop below this level could bring the $2,372 intraday low and $2,350 support into focus. Conversely, maintaining $2,400 could allow ETH to challenge resistance around $2,450 before targeting the psychological $2,500 level.

Technical indicators remain mixed but show improving short-term momentum. Ethereum’s Relative Strength Index stood near 53.7, indicating neutral conditions, while the MACD reading of 6.31 pointed to strengthening momentum. ETF flows, Fed policy and the defense of $2,400 are likely to remain key drivers of Ethereum price action.