Ethereum Price Forecast – ETH Could Hit $4500 If FED Takes A Dovish Stand on Rates

Highlights:

• Ethereum is trading between the $3930.5 resistance and $3749.7 support
• A dovish stance could trigger a rally to $4500 
• A rate hike could send Ethereum through support and possibly to $3500 

Ethereum (ETH) is in the red today, a reflection of the overall selloff across the market today. Compared to many altcoins that are down by over 10% intraday, Ethereum’s price action is marginal at best. At the time of going to press, Ethereum was trading at $3757.04, down by 1.48% in the day. Ethereum trading volumes have also dropped during the day. 

At the time of writing, they were down by 9% to stand at $33.33 billion. This positive signal indicates that ETH holders are not putting their Ether on the market. It is a sign that holders have faith in Ethereum, which could reduce the risk of any significant price correction if the market heads lower in the short term. Besides, the ongoing price correction across the market is due to short-term factors that could change quickly within the day. 

ETH Flat as Investors Await Fed Decision On Interest Rates

The intraday price correction is mainly due to the upcoming FOMC meeting, which will take place at 14:00 UTC. The markets are expecting the Fed to hold rates steady, and will be more keen on the comments of Fed Chairman Jerome Powell.

If Powell takes a dovish stand, the odds are high that the markets will rocket, as it would mean that the monetary tightening cycle is at its tail end and that aggressive rate cuts could be the next step. There is also the scenario where the Fed surprises the market and decides to cut rates. This could be because the economic outlook in the US and globally is looking better.

GM ☀️

FOMC meeting today – markets anticipate no rate change.

Then we can resume up only August 🚀 pic.twitter.com/JJo2NPojcm

— CO₿₿ERS (@CryptoCobby) July 30, 2025

Earlier in the year, many feared that the world economy could tank due to Trump’s tariffs. However, the US has slowly been inking deals with many countries worldwide. The latest are China, the EU trading bloc, the UK, and Japan. These are some of the most critical players in the global economy, and dealing with them means there is an increased sense of certainty in the world economy. The result is that the Fed could take this as a cue to start cutting rates to stimulate growth in the US. Either way, risk-on assets like ETH could be headed for a big price rally if the Fed cuts rates or holds them steady while taking a dovish stance.

President Trump just delivered a massive win with the US-EU trade deal.

The EU will now accept most American goods with zero tariffs, while their exports face a 15% tax.

The EU also committed to buy $750 billion in U.S. energy and make $600 billion in U.S. investment.

This… pic.twitter.com/KcBZf9Rpi7

— John Strand (@JohnStrandUSA) July 27, 2025

Ethereum ETFs Demand Now at Par with Bitcoin

Ethereum also stands to benefit from the fact that institutional interest in the number two cryptocurrency is on the rise. The interest is so big that Ethereum ETFs now have parity with Bitcoin. This means that the average investor in cryptocurrency ETFs increasingly favors Ethereum over Bitcoin.

With regulatory clarity in the US and staking ETFs likely coming soon, the odds are that Ethereum ETFs will get even stronger momentum in the short term. The result is that the demand for Ethereum could soon start outstripping demand. This could trigger an Ethereum rocket to new highs in the foreseeable future.

ETH is outpacing BTC. The signs are obvious now.

ETF net inflows on July 25th were $583.6M.
→ $453M into ETH
→ $131M into BTC

That’s a 3.5x ETH-to-BTC ratio.

Capital rotation is in full action right now, and ETH sits at the center of restaking, L2s, and stablecoins. pic.twitter.com/9xRkVtHUDo

— Uddalak (agent of Ethereum) (@ninja_writer21) July 26, 2025

Technical Analysis – ETH Consolidating Ahead of FOMC

As the markets await the Fed’s rate decision, Ethereum is consolidating between the $3930.5 resistance and $3749.7 support. If the Fed makes a move that favors risk-on assets, then a rally through the $3930.5 resistance could follow. In such a case, Ethereum could rally to around $4500 in the short term.

On the other hand, if the Fed takes a hawkish stand, ETH could drop through the $3749.7 support. With the odds higher for a more dovish outlook from the Fed, the odds are higher for a rally through the $3930.5 resistance.