Ethereum Surges 5% to $2,050 as Fed Pauses Rate Hikes, Ripple Wins Legal Battle

Ethereum's price surged by 5% on Wednesday, reaching $2,050 for the first time in ten days. This significant increase was driven by a combination of factors, including the Federal Reserve's decision to pause interest rate hikes and the resolution of Ripple's legal battle with the Securities and Exchange Commission (SEC).

The Federal Reserve's decision to maintain current interest rates amid stable economic indicators was perceived positively by investors, leading to increased confidence in riskier assets, including cryptocurrencies like Ethereum. This decision provided a favorable macroeconomic environment for Ethereum's price surge.

In parallel, Ripple's CEO, Brad Garlinghouse, confirmed that the SEC has dropped its case against the company. The lawsuit, which alleged that Ripple’s XRP token was an unregistered security, had been a significant source of regulatory uncertainty for the cryptocurrency industry. The dismissal of this case was viewed as a major win, alleviating concerns and boosting market sentiment.

In addition to these external factors, Ethereum's internal developments also played a crucial role in its price surge. Over the past week, the Ethereum network successfully implemented two key upgrades: the Pectra Upgrade and the Hoodi Update. These technical improvements strengthened investor confidence, helping ETH surpass the $2,000 resistance level on Wednesday.

According to the liquidation heatmap, Ethereum saw $86.58 million in total liquidations over the past 24 hours, with short traders suffering the most at $72.62 million. This accounted for a significant 25% of total market-wide liquidations, indicating a short squeeze that fueled ETH’s breakout. The rapid closure of short positions by traders who previously placed short positions around key resistance levels has reduced downward pressure on ETH, suggesting that bears are conceding the $2,000 resistance level.

With ETH advancing above $2,050 and stabilizing at $2,067 at press time, the next key level for bulls to establish control is $2,100. A decisive close above this level could open the door for a continuation toward the next resistance level at $2,373. However, despite the bullish momentum, Ethereum remains under a looming “death cross” overhang, where the 50-day moving average trends below the 200-day moving average, signaling a long-term bearish risk. If ETH fails to break and hold above $2,100, a rejection could trigger a retest of lower support around $1,927, potentially extending losses toward $1,801.

For now, bulls need to establish control above $2,100 to confirm sustained upside potential. A breakout beyond this level could drive ETH into a new uptrend, while failure may see renewed selling pressure in the coming days. The broader trend remains uncertain, and resistance and macro factors still play a role in Ethereum's ongoing price rally.