Ethereum Price Unchanged After Federal Reserve Rate Cut
October 31, 2025
The price of Ethereum, the second-largest cryptocurrency by market capitalization, has been struggling to maintain levels above $4000. After dropping below $3700, the asset has been trading sideways for approximately two weeks. As of now, Ethereum is trading at $3816, reflecting a 5% decrease in value over the last 24 hours.
Trader sentiment has been cautious despite the Federal Reserve confirming a 0.25% interest rate cut and the cessation of quantitative tightening. Ethereum futures are currently trading at a 5% premium to the spot price, falling within the lower boundary of the neutral range of 5-10%, signaling a lack of demand from leveraged traders.
Although there was a brief uptick in the price to $4000, it did not instill sustained bullish sentiment in the market. The bearish trend in futures coincided with a decrease in funds flowing out of US spot ETFs based on Ethereum since mid-October. Even an inflow of approximately $380 million earlier in the week failed to stimulate price growth.
Analyst Ted Pillows highlighted that Ethereum failed to see an increase in value despite positive developments in the market. He pointed out that the next support level for Ethereum is at $3800 and a breach below this level could trigger a sell-off towards the $3500-3700 range. To resume an upward trajectory, bulls must maintain levels above $4000.
Another analyst, FibonacciTrading, views a drop to $3300 as a “healthy pullback” within an upward trend for Ethereum. They believe the price is testing whether prior resistance has now turned into support and that a dip to $3300 would still be considered a positive move.
Cactus, another analyst, remains optimistic about Ethereum’s growth potential as long as bulls can hold the support range of $3800-4200. They anticipate a strong fourth quarter performance for Ethereum but emphasize the importance of maintaining support levels in order to achieve this.
On October 26, the transaction costs on the Ethereum network dropped significantly to 0.16 Gwei, equivalent to around $0.01. This decline in transaction fees could potentially have a positive impact on Ethereum’s ecosystem and usability in the long run.
