Selling ETHUSD on wave of negativity following Fed meeting

The ETHUSD pair is now trading within the $2,150–$2,160 range.

On the one hand, the US Federal Reserve’s (Fed) March 18 meeting was in line with market expectations. On the other hand, the regulator still dealt a heavy blow to cryptocurrencies—Ethereum in particular. The central bank kept borrowing costs in the 3.50%–3.75% range, as it was widely anticipated. However, officials’ projections for the future monetary path took a decidedly hawkish turn, with only one rate cut forecast this year. At the same time, the 2026 outlook for the Personal Consumption Expenditures (PCE) index—the regulator’s preferred inflation gauge—was revised upward to 2.7% due to soaring energy prices. The steady climb in commodities, in turn, was sparked by escalating tensions in the Middle East. During the press conference, Fed Chair Jerome Powell adhered to a hawkish rhetoric, as the world appears to be swallowed by uncertainty. He stated that the US economy is feeling fine, but the labor market is cooling way too slow. Thus, the risk of future rate hikes could not be completely ruled out.

Taken together, these factors pushed ETHUSD down 5%–6% during today’s trading session. Market participants had previously priced in at least two rate cuts this year, but geopolitical jitters and stubborn inflation forced them to tear up those forecasts and brace for a tighter policy environment. This shift hits speculative assets the hardest—and Ethereum is feeling the sting.

The final recommendation:

— Sell ETHUSD at the current price, with a $2,050 target over the next one to two weeks;

— Place Stop Loss 1% above the entry point to manage risk if the market plays against us.