Will Ethereum Rise or Collapse After the Fed Meeting?

Ethereum is entering a critical zone just as the Federal Reserve is preparing for a major policy shift. With the job market weakening and inflation still hovering above target, the Fed is facing a balancing act that could reshape risk appetite globally. For ETH, this means that the coming weeks could determine whether this currency will continue to rise to new highs or fall into a deeper correction. The combination of tightening price action on the chart and changing macroeconomic signals makes Ethereum one of the most closely monitored assets ahead of the Fed meeting in September. Ethereum Price Prediction: Weak Jobs vs Persistent Inflation The U.S. labor market is clearly showing signs of stress. With job growth weakening and consumer sentiment leaning towards rising unemployment rates, the Federal Reserve is under pressure to act. Economists are now predicting at least one rate cut in September, with more cuts expected by the end of the year. However, the market has been pricing in a deeper easing cycle, predicting that the Fed will lower interest rates to around 3.5–3.75% in December. This will make borrowing cheaper, inject liquidity into risky assets, and potentially push cryptocurrency prices higher. But there is a problem: inflation remains stable at around 2.9%, and tariffs are quietly creeping into consumer prices. If inflation flares up again, the Fed may slow down the easing pace, dampening market excitement.

For the price of Ethereum, this macro context is very important. Lower interest rates often drive demand for growth and risk assets like ETH, but inflation risk causes volatility. Investors need to closely monitor the upcoming CPI figures as well as the charts of ETH. Current Price Movement of Ethereum: The Compression Before the Breakout

Ethereum is trading around $4,313, right in the middle of the tightening Bollinger Bands structure. Volatility has sharply decreased since the end of August, a clear sign that a major breakout is imminent. The upper Bollinger Band is near $4,731, while the lower boundary is around $4,143, marking the immediate range that ETH needs to overcome. Recent price movements indicate that the price of ETH is consolidating after the price surge from July to August, with buying pressure defending the zone of $4,100. This consolidation has formed a base just above the 20-day moving average, indicating accumulation rather than distribution. However, failing to hold the $4,100 level will open up downside risk to the $3,800 level. On the positive side, breaking above the $4,750 level could trigger a rally towards the Fibonacci extension level at $5,200 and potentially $5,600 if the momentum aligns with liquidity driven by the Fed. Ethereum Price Prediction: What Should Investors Expect? The combination of macroeconomics and technology makes the coming weeks important for ETH: If the Fed cuts by 0.25% in September and signals further easing, ETH could escape the consolidation zone, targeting the range of $5,200–$5,600. If inflation data unexpectedly rises, limiting the Fed's actions, ETH could stall below $4,750 and risk returning to the support level of $4,000–$3,800. A more aggressive Fed rate cut of 0.50% could boost risk appetite, creating a breakout rally that extends to $6,000 in Q4. The real motivation will be how the market interprets the balance between caution with inflation and weakness in the labor market from the Fed. If investors believe that the Fed will lean towards growth, the price of ETH will benefit. Investment Outlook: Patience Before Positioning The price of Ethereum is currently in a waiting phase. With the Bollinger Bands narrowing and the Fed's decision approaching, traders should prepare for significant volatility. A cautious strategy is to monitor for a breakout confirmation above $4,750 before buying, with a stop-loss set near $4,100. However, long-term investors may view any pullback to $4,000 as an opportunity to accumulate before the next rally driven by liquidity. This really means that $ETH is at a macro technical inflection point. The next move by the Fed could open a new advance towards the $5,600–$6,000 level, or force $Ethereum to retest the $3,800 level. Either way, the current correction won't last too long.