@daryl81laneg4u
Ethereum’s price trend is highly sensitive to Federal Reserve policy because interest rate changes directly influence liquidity across global markets. When investors anticipate higher rates, risk assets like Ethereum typically face downward pressure as capital flows toward safer assets. Conversely, speculation about rate pauses or cuts tends to trigger inflows into crypto. Ethereum is particularly impacted because its staking yields compete with traditional bond yields; higher interest rates make ETH staking relatively less attractive. Additionally, rate hike expectations affect the strength of the U.S. dollar, which in turn influences crypto demand. Therefore, Fed policy remains a key driver of Ethereum’s medium-term price movement.
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