Ethereum Price Prediction: Fed Rate Freeze & ETF Inflow Drop Explained

Ethereum Price Prediction
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Ethereum Price Prediction: After a fall from $2700, Ethereum has found its feet again at $2500. For the past six days, Ethereum’s price has been stable throughout price consolidation. However, during the last two days, Ethereum Exchange-Traded Fund (ETF) inflows into the US have decreased. The US authorities reported inflows of over $32 million over these two days, which is extremely low when compared to past patterns. If we contrast this sharp decline with the $170 million inflow for the previous week, it suggests concerns.

This week is a constant one as the inflows and outflows keep on fluctuating, making it difficult for the investors to navigate its future direction. In the current situation, the open interest rates have been kept fixed for the past week. 

Federal Reserve’s action on the Ethereum market

As we have seen, the constant trend of the open interest rate in the Ethereum market has been observed by the US. This is because the Federal Reserve has decided to fix the rates between 4.25% and 4.50% amid the tension in the US. On 18 June 2025, the Federal Reserve took into account the tensions going on in the US, including tariffs and war in the Middle East. The result was the fixation of interest rates to focus on the more important matters at hand. 

A post was released on Wednesday that addressed the investors regarding the situation. In the Middle East, all the top powers, including the US, Russia, and China are involved creating tension in the market. The war is impacting directly and indirectly to the markets as the main focus is realigned to the geopolitical issues.

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How is this Impacting the Market and Ethereum Rates?

In the global political issues, Tehran is taken out of account as it is evacuated by the people and thus risking the credibility of investors. In the middle of this, if there is any change in the crude oil flows or any supply shock is observed, it will automatically lead to inflation in the economy. 

To avoid the risk, some investors are hedging on the rates, while some are completely neutral on this matter. As per the data, investors are using their strike prices that have recently increased from $2450 to $2500 to avoid any risks that may pertain. If it continues, it could lead to severe fluctuations in the market. 

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This move is possible when the investors have invested in put contracts that do not restrict them from selling an asset before the end of the contract. This gives them security in case of future risks at a strike price in case of a fall. All this shows a fall in the rates when the prices fell below the strike price of the contract. 

Prediction of Ethereum Price

In total, Ethereum prices equalled $64.61 million for future liquidations, where long liquidations were $35.61 million. On the other hand, short liquidations were recorded to be $29 million in the last 24 hours. 

On 18 June 2025, Ethereum ended up at $2450 at the rate of 38.2% as per Fibonacci Retracements. Assumptions are made that if ETH crosses the EMA in 50 days, the price can rise to $2850. However, a bullish trend has to be brought to reach this height. 

In case of a further fall, a downward fall from the 38.2% Fibonacci level can lead to severe fall in the Ethereum price levels. 

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Conclusion

Ethereum prices are on the edge, and their rise or fall depends on the future decisions of the Federal Reserve. The fixation of the rates is not going to help for long and may lead to a sharp fall in the future.