Ether Falls Below $2,500 as Fed Rate Outlook Weighs on Markets

Ether (ETH) fell below $2,500 on Thursday, extending a three-day decline as higher U.S. Treasury yields pressured cryptocurrencies and other risk assets.

ETH was quoted at $2,470, down nearly 4% during the session. The decline came as markets focused on tighter monetary policy and the possibility of another Federal Reserve rate increase before the end of 2026.

Minutes from the Federal Open Market Committee’s Sept. 15-16 meeting showed that most participants viewed another increase in the federal funds rate as likely appropriate by year-end. The Federal Reserve raised its target range by 25 basis points in September to 3.75%-4%.

U.S. spot Ether exchange-traded funds also recorded net outflows over seven consecutive sessions, totaling about $565 million. Ether held on exchanges increased during the same period, adding to signs of selling pressure around the token.

The decline placed ETH below several short-term technical averages. The next support level identified in the market analysis was near $2,355.