Ethereum Rises 3.2–3.7% Amid Fed Hike and ETF Outflows

Understanding Ethereum's Recent 3.2–3.7 Percentage Point Move

Ethereum's recent 3.2–3.7 percentage point increase is primarily a relief rally following a well-anticipated Fed rate hike, with buyers defending key support near $2,400 and leveraging tight supply despite ETF outflows.

Macro Events And ETF Flows

The recent move in ETH is influenced by two significant macro and policy headlines, alongside ETF flow data.

1. The Federal Reserve's first 25 basis point rate hike in about three years, taking the funds rate to a 3.75–4.00 percent range, was heavily anticipated by markets. This decision, along with the possibility of at least one more hike by year end, was quickly "priced in," leading to a broad crypto rally. ETH rose around 3 to 3.5 percent overnight alongside most large caps.crypto rally after Fed hike

1. The U.S. Senate's failure to advance the CLARITY Act, a digital asset market structure bill, extended regulatory uncertainty for U.S. listed crypto products. This was seen as a negative for spot BTC and ETH ETFs.Ethereum price and CLARITY Act coverage

1. U.S. spot ETH ETFs saw sizable outflows around these events, with one report citing about 224 million dollars of net outflows on the Fed hike day and a similar figure the prior day, even as ETH held above 2,400 dollars.Coinspeaker Ethereum price and ETF flows