20.03.2025
Sholanke Dele
Analyst at Traders Union
20.03.2025

Ethereum news: ETH price breaks $2,000 again as Fed policy shift sparks momentum

Ethereum news: ETH price breaks $2,000 again as Fed policy shift sparks momentum Ethereum reclaims $2K, hits $2,070 high

​Ethereum price has finally reclaimed the $2,000 psychological level after eight days of consolidation, surging to $2,070 following the Federal Reserve’s latest policy update. 

However, the rally faced resistance at the 100 EMA on the 4-hour chart, triggering a 2.5% pullback as Ethereum retested the $2,000 level for potential support.

The Fed’s signal of a slowdown in quantitative tightening (QT) has fueled risk appetite in the crypto market, giving Ethereum the momentum to break out of its tight range. Reduced QT typically eases liquidity pressures, making high-growth assets like Ethereum more attractive.

ETH/USD price dynamics (March 2025). Source: TradingView

Technically, Ethereum’s price action suggests that $2,000 could now act as a key support level. The RSI on the 4-hour chart is declining but remains in bullish territory, indicating that further upside remains possible if buying interest returns. A successful hold above $2,000 could set the stage for another push toward $2,070 and beyond.

Analysts debate Ethereum’s potential run toward $10,000

Some analysts see Ethereum's recent price action as the end of a potential bear trap. CryptoGoos, a crypto analyst, suggests that Ethereum could be on the verge of a trend reversal, with a breakout past $4,000 potentially paving the way for a run toward a new all-time high of $10,000. If this scenario plays out, Ethereum could enter a strong bullish phase, trapping short sellers and driving further gains.

However, a contrarian view considers the possibility of Ethereum failing to hold $2,000, which could expose it to deeper retracements. A break below this level could shift sentiment, delaying a stronger recovery. For now, Ethereum’s ability to maintain support at $2,000 will be critical in determining its next move. A rebound could reinforce bullish momentum, while a breakdown would suggest a longer consolidation phase before any sustained upside.

Standard Chartered Bank lowered its Ethereum price target from $10,000 to $4,000. Ethereum traded within a narrow range of $1,830 to $1,960 over the past eight days.

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