Ethereum climbed nearly 2% over the past 24 hours as the cryptocurrency market continues its recovery following the Federal Reserve’s latest interest-rate decision.
$ETH rebounded from a low of $2,370 on Wednesday and moved toward $2,470, suggesting traders viewed the rate increase as largely priced in.
Rather than triggering a “sell the news” decline, the decision produced a counterintuitive recovery across the crypto market.
Markets are pricing in an almost 90% chance of at least one additional Fed rate increase by the December meeting, according to FedWatch data.
Ethereum ETF flows turn negative
Despite the price rebound, institutional demand through US spot Ethereum exchange-traded funds has weakened.
Investors withdrew a combined $405.7 million from the products over the last three days. Those outflows have kept monthly net inflows well below the levels recorded in August.
The decline suggests some investors continue to reduce their exposure to Ethereum despite the market recovering from its latest dip.
The continuous outflows from the funds could be tied to investors worried about another rate hike, as higher interest rates generally make risk assets less attractive while strengthening returns on cash and government bonds.
However, Ethereum’s post-meeting recovery indicates that bearish positioning may have become excessive once the anticipated hike was confirmed.
The market rally over the last 24 hours also comes as the Bank of Japan increased its benchmark interest rate by 25 basis points on Friday, taking it to 1.25%.
The rate hike comes as policymakers respond to persistent inflation and continued weakness in the yen.
The hike represents the central bank’s second rate increase in three months. It also lifted Japan’s benchmark rate to its highest level in 31 years,
This move distances Japan’s apex bank from the ultra-loose monetary policy that defined much of the country’s recent economic history.
Ethereum’s trading volume could be moving toward a signal that previously appeared before several major rallies.
A bullish crossover occurs when the seven-day moving average of trading volume rises above its 30-day average. Three previous occurrences reportedly coincided with the beginning of strong $ETH advances.
Data from Santiment shows that the gap between the two averages has narrowed considerably.
A crossover would be the first since July 2025, when Ethereum subsequently advanced from approximately $3,300 to $4,750.
The pattern does not guarantee another rally, but rising volume alongside a price recovery can indicate strengthening participation and demand.
$ETH bull flag keeps $3,300 target in view
Ethereum’s daily chart continues to display a possible bull flag after buyers defended the $2,400 support level.
A comparable structure developed during the April-May consolidation last year before $ETH advanced to a record high.
For the current pattern to confirm, Ethereum would need to break decisively above the flag’s upper boundary near $2,550.
A successful breakout could open the door to approximately $3,300 over the following weeks.
The Relative Strength Index remaining above 55 also indicates that bullish momentum has not disappeared.
Failure to clear $2,550 would leave Ethereum vulnerable to another test of $2,400.
A stronger-than-expected US dollar response to higher rates could deepen the pullback and potentially send $ETH toward its 200-day exponential moving average.
