Ethereum News Today: Altcoins Plunge Over 10% as Ethereum Stagnates Ahead of Fed Meeting

Altcoins have faced steep declines in recent trading sessions, with several tokens recording daily losses exceeding 10%, as Ethereum (ETH) remains stagnant near the $3,550 threshold. The cryptocurrency market has entered a correction phase amid heightened anticipation for the upcoming Federal Reserve meeting, prompting investors to adopt profit-taking strategies. While the asset class experienced a notable rally earlier this month, momentum has faltered, with technical indicators and market sentiment signaling short-term risks [1].

Ethereum’s price action has been a focal point, as traders monitor its interaction with key resistance and support levels on the ETH/BTC pair. The token’s recent bounce from resistance failed to sustain gains, retreating to the 0.03 level after failing to break above 0.033 BTC. Analysts note that continued profit-taking ahead of the Fed meeting has exacerbated downward pressure, with further declines possible if the pair dips below 0.0294. A sustained move beneath 0.0262 could trigger a test of the 0.0249 level, potentially dragging ETH toward $3,400 [1]. The ETH/BTC chart remains critical for gauging broader market sentiment, as the asset’s ability to reclaim the 0.033 level could signal renewed bullish momentum after weeks of consolidation.

The altcoin market has fared worse, with tokens like Dogecoin (DOGE), Shiba Inu (SHIB), XRP, ADA, and Solana (SOL) all posting losses between 7% and 12%. The sell-off reflects risk-off behavior in anticipation of macroeconomic developments, as investors prioritize capital preservation over speculative exposure. Despite recent volatility, some observers highlight potential catalysts for altcoins, particularly those tied to the BNB Chain ecosystem. FLOKI Coin, a meme token on the BNB network, has shown resilience, with its price surging 150% over four months following a recent "shipment" event. However, this performance is viewed as speculative, with gains offset by earlier losses during the same period. Analysts caution that FLOKI’s trajectory remains highly uncertain, contingent on broader market conditions and the performance of BNB, which recently reached an all-time high [1].

The Federal Reserve’s influence on crypto markets remains pronounced, as the sector continues to correlate with equity and bond markets. Investors are recalibrating positions ahead of the central bank’s policy decision, which could impact liquidity and risk appetite. While technical indicators suggest a potential rebound for Ethereum if it holds above $3,400, the broader altcoin market faces heightened vulnerability to further profit-taking and macroeconomic headwinds.

Source: [1] Altcoins Experience Dramatic Declines and ETH Struggles at $3,550

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