Ethereum's price has stalled below $2,000, unable to break out due to resistance and market fear. The cryptocurrency was trading around $1,922 on July 30, up roughly 0.6% on the daily chart.
Market Analysis
The daily chart places immediate resistance near $1,938, an area that previously acted as support in February and March. Momentum has also started to flatten, with the daily relative strength index standing near 58.
The Federal Reserve's decision to maintain its benchmark interest rate at 3.5%–3.75% has given investors little reason to increase exposure to high-beta assets like Ethereum. Higher rates increase the relative appeal of interest-bearing assets while raising the opportunity cost of holding cryptocurrencies.
Regulatory Uncertainty
Regulatory uncertainty is also weighing on Ethereum indirectly, with the US Senate postponing work on the Digital Asset Market Clarity Act. The delay reduces the likelihood of meaningful progress before the Senate's August recess.
According to data from SoSoValue, US spot Ethereum ETFs recorded approximately $18.65 million in net outflows on July 29, reversing the previous session's inflow. Crypto analyst Michaël van de Poppe expects the recovery to continue while Ethereum remains above its medium-term moving averages.
