Ethereum News Today: Ethereum Rises 3.6% Below $4,000 Amid Post-FOMC Capital Rotation

Ethereum has shown notable strength in the wake of the Federal Open Market Committee (FOMC) meeting on July 31, 2025, with on-chain data and price action signaling potential for a breakout above $4,000. Following the meeting, Ethereum maintained gains above $3,800, outperforming Bitcoin in a market environment where risk appetite is typically subdued due to the Federal Reserve’s hawkish stance. This resilience contrasts with the usual trend of Bitcoin dominating the crypto market during such periods.

Ethereum’s dominance (ETH.D) rose by nearly 3% to 12.13%, indicating a capital rotation from Bitcoin, which has held steady at a 60% dominance level [1]. This divergence is significant because Ethereum typically underperforms when Bitcoin dominance increases. The shift is supported by on-chain activity showing increased inflows into Ethereum and bullish divergence in the ETH/BTC pair, which recently broke above the 0.03 level [1]. This movement suggests that strategic investors are repositioning capital toward Ethereum, potentially in anticipation of further upside.

Smart money accumulation has also intensified, with three new whale wallets collectively acquiring over 73,821 ETH in recent transactions. This large-scale buying aligns with historical patterns observed after previous FOMC events, such as the 40% rally in May and the stronger 50% rebound in June. These moves have turned key resistance levels into support zones, reinforcing Ethereum’s technical strength. The continued accumulation by institutional investors suggests confidence in Ethereum’s ability to outperform Bitcoin in the near term [1].

Price action further supports this narrative, as Ethereum has hovered just 3.6% below the psychological $4,000 level. Weekly closes have shown consistent strength, with ETH breaking key supply zones and maintaining control above $3,800. On-chain flow and whale activity reinforce the likelihood of a clean breakout in the coming sessions, particularly if the current rotation of capital from Bitcoin to Ethereum continues.

Analysts highlight several key indicators to monitor. Ethereum dominance metrics and Bitcoin dominance levels remain critical in assessing the ongoing capital rotation. Whale activity is another important signal, as large accumulations often precede significant price moves. Additionally, tracking key resistance levels and broader macroeconomic signals—such as the Federal Reserve’s stance—can provide further insight into Ethereum’s trajectory [1].

Ethereum’s recent performance underscores its growing role in the crypto market and its potential to serve as a hedge against Bitcoin’s volatility. With smart money positioning and favorable technical indicators, Ethereum appears well poised for a breakout in the near future.

Source: [1] Ethereum Shows Signs of Potential Strength Amid Post-FOMC Market Rotation and Smart Money Activity (https://en.coinotag.com/ethereum-shows-signs-of-potential-strength-amid-post-fomc-market-rotation-and-smart-money-activity/)