Ethereum attempts comeback after Fed decision not to tamper with rates

Ethereum (ETH) saw another day of decline on Wednesday as its price dipped outside of a key range. This follows a possible sell-off from institutional whales, the US Dollar Index gaining strength, and the Chair of the US House Financial Services Committee, Patrick McHenry, accusing Securities & Exchange Commission (SEC) Chair Gary Gensler of misleading the US Congress.
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Michael Ebiekutan Michael Ebiekutan
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Ethereum attempts comeback after Fed decision not to tamper with rates
CRYPTOS | 05/02/2024 00:23:31 GMT
Institutional whales appear to be dumping Ethereum after recent dip.
Fed’s decision to leave rates unchanged appears to have helped ETH's price recover slightly.
SEC Chair Gensler has misled Congress, considering recent revelations from Consensys suit, says Congressman McHenry.
Ethereum (ETH) saw another day of decline on Wednesday as its price dipped outside of a key range. This follows a possible sell-off from institutional whales, the US Dollar Index gaining strength, and the Chair of the US House Financial Services Committee, Patrick McHenry, accusing Securities & Exchange Commission (SEC) Chair Gary Gensler of misleading the US Congress.

Read more: Ethereum dips below key level as Hong Kong ETFs underperform

Daily digest market movers: Whales dump, SEC Chair accused
Ethereum's classification as either a security or commodity is trending on Wednesday. Here are your key market movers:

ETH dip follows the US Dollar index gaining strength as it shot above 105.00 for the first time in nearly five months. This may have been responsible for Bitcoin's further decline on Wednesday, taking Ethereum along with it. A strong US Dollar may see investors giving less attention to cryptocurrency investments.

As a result the market's reaction aligns with earlier predictions that a key macro event could have a prevailing impact on the price of Ethereum.

However, Ethereum appears to be quickly recovering losses following the Federal Reserve leaving rates unchanged at 5.25-5.5% on Wednesday. This indicates the Fed hasn't made tangible progress in tackling inflation.

Following a further plunge across top cryptocurrencies, institutional whales have been depositing ETH heavily on exchanges, according to Whale Alert. A series of posts from Whale Alert confirms whales have deposited over 100,000 ETH to exchanges in the past 24 hours.