Ethereum Tumbles As Rising Fed Rate Hike Odds Trigger Crypto Selloff - MarketForces Africa

The total crypto market cap fell 3% in 24 hours, reflecting widespread investor anxiety. ETH's trading volume surged 82.86% during this period, indicating intense market activity. The decline comes as US Treasury yields rise and the dollar strengthens, creating a challenging environment for risk assets.

Boston Fed President Susan Collins suggested that interest rates may need to be raised beyond recent projections due to persistent inflation and employment data. This hawkish stance from the Federal Reserve has significantly dampened sentiment across cryptocurrency markets.

Market Mechanics

Traders noted that the price drop was intensified by long liquidations and elevated trading volume, which amplified selling pressure rather than explaining its initial cause. Market data recorded approximately $241 million in ETH position liquidations, with about 76% of them being long positions.

Technical Outlook

ETH's recent swing low is $1,712, with nearby resistance around $1,830-$1,840. If the cryptocurrency holds above $1,712 and reclaims that resistance level, it could retest $1,900. However, a break below $1,712 would weaken this technical setup.

The near-term outlook remains weak unless price action and fund flows show returning buyers. Traders are closely monitoring whether ETH maintains the $1,712 support level and whether the next ETF report reveals net outflows or inflows, which will serve as a concrete demand check.

Supply Pressures

The downturn was further fueled by broad market weakness, reported ETF withdrawals, and sales of 7,500 ETH by an Ethereum Foundation-linked wallet over four days. These factors added direct supply pressure to the market, contributing to the significant price decline.