Rebound after FOMC? Ethereum's Direction Divides

▲ Ethereum (ETH)/ChatGPT generated image ©

Ethereum has entered a short-term correction phase, shaken by large-scale sell signals from whales and macro uncertainties.

According to cryptocurrency media Watcher.Guru on April 29 (local time), Ethereum (ETH) has fallen by 1.3% over the past 24 hours, 1.5% over the week, and approximately 4% over 14 days. However, it has risen by 14.1% on a monthly basis and 26.6% since April 2025, maintaining its mid-to-long-term trend.

This decline is linked to a broader market correction. Bitcoin (BTC) rose to $79,000 on April 27 but then fell to the $76,000 range, putting downward pressure on the overall market, and major altcoins also showed accompanying weakness. This reaffirms the typical structure where the direction of Bitcoin, the market-leading asset, dictates the overall market trend.

Furthermore, the movements of whale investors have amplified the downward pressure. Recently, over $100 million worth of Ethereum moved to exchanges, which is interpreted as a signal of increased selling potential. The pattern of assets moving from wallets to exchanges is generally perceived as a preparation phase for selling, alongside providing liquidity.

The market views these movements as a risk reduction strategy ahead of the Federal Open Market Committee (FOMC) meeting in May. According to CME FedWatch, the probability of interest rates being frozen at this meeting is reflected as 100%. If the interest rate environment remains high, investors tend to reduce their exposure to risky assets, and cryptocurrencies like Ethereum are relatively more affected.

However, there is still room for the future trend to reverse. There is a possibility that expectations for interest rate cuts will form with the change of the Fed chairman in May, and the passage of the U.S. cryptocurrency market structure bill, the CLARITY Act, is also cited as a major variable. If these variables materialize, Ethereum is expected to regain upward momentum.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*