Ethereum gained 1.7% and reclaimed $2,431 after absorbing a Federal Reserve rate increase and a Senate setback for crypto legislation. Exchange outflows and derivatives data point to buying by crypto-native traders, but spot Ethereum ETFs kept losing money.
Ethereum gained 1.7% over 24 hours and reclaimed $2,431, shrugging off the Federal Reserve's first interest-rate increase in three years and the CLARITY Act's failure to advance in the Senate. Exchange outflows, renewed buying in perpetual futures, and falling short liquidations suggest crypto-native traders bought the pullback.
Ether holds above $2,400 after the Fed's move
The Fed raised its benchmark rate by 25 basis points to a range of 3.75%–4% on Wednesday. The decision was unanimous, 12–0, with markets assigning a probability above 90% to the increase before the meeting.
Most Fed officials also expect another rate hike before the end of 2026. Ethereum stayed above $2,400, suggesting the move was largely priced in. The CLARITY Act's failure to reach the Senate's 60-vote cloture threshold also produced only a brief decline before buyers returned.
Exchange outflows and derivatives point to buying
More than 152,000 ETH left exchanges on Tuesday, the largest daily net outflow since June, according to CryptoQuant. Inflows briefly exceeded withdrawals on Wednesday before the metric returned to net outflows, though large withdrawals can also reflect transfers between custodians rather than outright selling.
Ethereum's taker buy-sell ratio has returned to buy-side territory after briefly signaling stronger selling on Tuesday. Ethereum recorded $221 million in liquidations on Tuesday, with long positions accounting for 88% of the total.
Liquidations then declined to $87.6 million over the next 24 hours, with short positions making up $45.4 million of that figure. Open interest stayed close to 13 million ETH across both days, while funding rates returned to positive territory.
ETF outflows contrast with on-chain buying
Institutional flows present a less constructive picture. US spot Ethereum ETFs recorded $224.1 million in net outflows on Wednesday, according to SoSoValue. That followed $141.4 million in withdrawals on Tuesday.
The products therefore lost a combined $365.5 million across two sessions. This divergence suggests crypto-native buyers may be absorbing the decline while ETF products face redemptions.
Technical picture stays neutral
Ethereum has recovered above $2,431 and its 20-day exponential moving average, both of which provided support over the past month. The Relative Strength Index stands at 53, while the Stochastic oscillator is near 26, readings that suggest consolidation rather than overbought conditions. Immediate resistance sits at $2,544.
A sustained breakout could allow ETH to target $2,626 and then $2,786. A loss of $2,431 would bring the 50-day EMA at $2,282 and the 200-day EMA at $2,269 into focus as the next major support zone. Lower levels include $2,172, the 100-day EMA at $2,163, and horizontal support at $1,961.
Source: CoinJournal
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