Key Highlights
- Ethereum rebounds to around $2,461 after briefly falling below the $2,400 support level.
- The Fed’s 25-basis-point rate hike and CLARITY Act setback add pressure to the crypto market.
- U.S. spot Ether ETFs recorded $224 million in outflows, while Bitcoin ETFs saw $296 million leave the funds.
Ethereum price is hovering around $2,461 on Thursday after briefly falling below the key $2,400 support level as investors reacted to several fundamental events this week including the Federal Reserve’s rate hike and the setback back for the CLARITY Act.
According to data from CoinMarketCap, ETH is up 2.97% after briefly dropping to about $2,372 before buyers returned and pushed the price back above $2,400. The market cap has also increased by 2.98% to approximately $300 billion in value within the last 24 hours.
The surge came after a difficult Wednesday for the crypto market. Data from CoinMarketCap shows that Bitcoin now trades for $76,580 after dropping to $75k yesterday while XRP changed hands around $1.31 and Solana moved toward $100.88.
In short, the market is now recovering hours after investors reacted to the Fed’s interest rate decision and watched the Senate’s failure to advance the CLARITY Act.
Fed rate hike puts pressure on crypto
The Federal Open Market Committee raised its benchmark interest rate by 25 basis points after its September meeting in Washington.
The increase moved the target range to 3.75%–4.00% and marked the first rate hike since 2023. Policymakers pointed to high inflation, strong consumer spending, stable employment growth and strong business investment when explaining the decision.
For crypto investors, higher interest rates can make the market more difficult because borrowing becomes more expensive. Higher Treasury yields can also reduce demand for assets with higher price swings, such as cryptocurrencies. The Fed said its next decisions would depend on inflation, employment and other economic data during the remaining meetings this year.
Clarity act setback adds uncertainty
Meanwhile, the rate hike came one day after the Senate failed to move forward with the CLARITY Act, adding another source of uncertainty for the crypto market.
On September 16, the Senate rejected a procedural motion by 49–50, while the bill needed 60 votes to advance. Democrats pointed to unresolved ethics concerns, while three Republicans also voted against the motion.
ETF outflows add more pressure
ETF flows also added more pressure to Ethereum. According to data from SoSoValue, U.S. spot Ether products recorded $224 million in net outflows on September 16, while spot Bitcoin ETFs saw $296 million leave the funds. Combined, the withdrawals reached about $520 million.
BlackRock’s ETHA recorded the largest net outflow among the Ether ETFs, at about $110 million.
The outflows showed that large investors were pulling money from the products around the Fed’s rate decision, making it harder for Ethereum to build a stronger recovery.
Ethereum faces a key $2,400 test
On the 4-hour chart, ETH is testing the $2,400 area as a key short-term support level.
According to the current price action, a sustained move below this level could push the price down to $2,372, or further to the next support level around $2,350. On the other hand, holding above $2,400 could allow ETH to test resistance between $2,450 and $2,500.
The 4-hour RSI stood at 53 at the time of writing, keeping it near the neutral 50 level and below the commonly used 70 overbought threshold.
For now, the $2,400 level remains an important short-term area for ETH traders as markets assess tighter monetary policy, ETF outflows and uncertainty surrounding the CLARITY Act.
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