Traders paused risk assets as Ethereum retreated from session highs while awaiting the Federal Reserve’s policy decision later today.
Ethereum dropped 1.53% to $1,890 on Wednesday, paring gains after reaching a session peak of $1,926. The pullback reflects broader caution as investors await the Federal Reserve’s rate decision, expected to hold rates steady at 3.50–3.75% but potentially signal future policy shifts.
The decline follows a sharp recovery from July lows near $2,026, supported by three consecutive weeks of net inflows into spot ETH ETFs totaling $71.17 million. Despite the inflows, the death cross—a bearish technical signal—remains in place, with the 50-day EMA below the 200-day.
Bitcoin held near $64,000, while the Fear & Greed Index lingered at 29, indicating heightened market anxiety. Equity markets mirrored the cautious sentiment, with traders bracing for potential volatility from the Fed’s tone.