Ethereum Rises on Hopes of Increased Fed Liquidity

Ethereum (ETH) saw a sharp rise following signals from the U.S. Federal Reserve indicating a slowdown in quantitative tightening (QT), raising market expectations for increased liquidity. After briefly surging from the low $1,900 range to near $2,100, ETH has since pulled back slightly to below $2,000.

However, Ethereum failed to break through key technical levels — the 21-day moving average and the $2,100 resistance — both of which have acted as major barriers since early 2025. This suggests that downside pressure may persist in the short term.

While a looser monetary policy could eventually support a broader altcoin recovery, a significant liquidity wave from the Fed is typically triggered by financial stress or market turmoil. As such, some analysts believe Ethereum may face further declines in 2025 before staging a strong rebound in 2026, potentially fueled by a new round of quantitative easing.

Going forward, key U.S. economic indicators and policy developments — especially around trade tensions — will likely play a major role in determining Ethereum’s direction. The possibility of retesting the $1,500 level, last seen in mid-2023, cannot be ruled out.

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