Ethereum price hovered at $2,445 on Thursday after briefly dipping below the $2,400 support zone earlier in the session. The token touched an intraday low near $2,372 before recovering as dip demand emerged following Wednesday's decline. Bitcoin traded near $76,845, while XRP changed hands around $1.31 and Solana advanced toward $100.88 during the same period.
The rebound came amid sharp market volatility triggered by tighter monetary policy, significant ETF withdrawals, and a legislative setback for cryptocurrency regulation in Washington.
Fed Rate Increase Pressures Risk Assets
The Federal Open Market Committee raised its benchmark rate by 25 basis points following its September meeting, lifting the target range to 3.75%–4.00%. This marked the first increase since 2023. Policymakers cited high inflation, strong spending, stable employment growth, and robust business investment as supporting factors for the decision.
Higher interest rates typically strain volatile assets like cryptocurrencies by increasing yields on safer Treasury investments and raising borrowing costs that constrain speculative trading activity. Fed officials indicated that future rate decisions would depend on inflation, employment, and broader economic data through the remainder of the year.
Regulatory Hurdle in Congress
Cryptocurrency regulation faced a setback when the Senate rejected a procedural motion for the CLARITY Act by a 49–50 vote. The measure needed 60 votes to advance. Democrats cited unresolved ethics concerns, while three Republicans also opposed the motion, leaving comprehensive digital asset market rules unlikely to pass this year.
Institutional Selling Accelerates ETF Outflows
United States spot Bitcoin ETFs reported $296 million in net withdrawals on September 16, while spot Ether products lost $224 million, bringing combined daily redemptions to approximately $520 million. The outflows reflected institutional caution surrounding the widely anticipated Fed rate decision.
BlackRock's ETHA recorded the largest Ether fund withdrawal among listed products, declining $110 million during the session. Morgan Stanley's MSBT bucked the broader Bitcoin ETF trend, attracting $3.47 million in fresh capital.
Technical Outlook for Ethereum
The $2,400 level remains the immediate threshold determining whether Ethereum stabilizes or faces further declines. A sustained break below $2,400 could expose support near $2,372, followed by deeper levels around $2,350. Holding the level would strengthen attempts toward resistance between $2,450 and $2,500.
Technical indicators showed mixed signals. The Relative Strength Index approached 53.7, indicating neutral momentum without overbought conditions. The MACD indicator registered 6.31, generating a short-term purchase signal as momentum improved. However, persistent ETF selling and higher borrowing costs continue to challenge recovery strength across short-term trading desks.
For Ethereum to extend its rebound, it must absorb ongoing ETF outflows while navigating tightened financial conditions. Breaking above $2,450 would build confidence toward the psychological $2,500 level. A failure to defend $2,400 would expose the post-Fed recovery to fresh selling pressure.
