The price of Ethereum (ETH) has decreased by 2.6% as it currently sits at $2,446, according to data from Coinbase. This drop comes ahead of the Federal Reserve decision on interest rates.

CoinGape Prediction markets show that there is an 80% chance that the Fed will hike interest rates by 25 basis points. This increase may have been factored into the price by ETH traders, who have seen a rise in outflows from exchanges, indicating a reluctance to sell in the short term.

The outflows from Ethereum exchanges have jumped over the FOMC.

According to Ali Martinez on X, 140,000 ETH worth $350 million have exited exchanges in the last 96 hours.

Such withdrawals indicate that investors are opting to keep their Ethereum investments instead of selling given Goldman Sachs and JPMorgan's prediction of the Fed's September 16th meeting, where it is expected that interest rates will be raised.

What is significant to note is that data from Santiment indicates that the supply of ETH on exchanges will come to a halt soon as the total number of ETH on exchanges dropped from 22.9 million in June 2020 to 6.06 million.

Santiment said that "with the shift of Ethereum into staking, ETFs, long term holdings, as well as treasury companies such as Bitmine, which has amassed a stake of 4.9% of the total supply, this was the reason for the decrease.

The popularity of the ETFs has surged, with ETH having the highest on-chain demand at $11.77B on Deribit.

The rise in outflows on the exchanges is riding a wave of institutional and speculator demand for Ethereum.

According to SoSoValue, Ethereum ETFs have had net inflows of $121.02 million into their funds this week so far. Since the week ending Aug. 21, these ETFs have gathered inflows for the last five weeks.

Ethereum's open interest on Deribit has also increased to $11.77 billion ahead of the Fed rate decision and CLARITY Act vote.

This increase in the OI on Ethereum futures contracts indicates that positions are being taken on Ethereum futures on Deribit, as CoinGlass shows the OI has grown by $700 million since Sept. 12.

The Ethereum long/short reading on Binance was also up, to 3.10, marking the highest reading since June 2026. This means that there is more and more a bull sentiment on Ethereum price among traders on the Binance exchange the closer we get to the Fed's decision on interest rates.

Ethereum Price has produced a bearish breakdown as the momentum is shifting.Ethereum Price is breaking down bearishly as momentum weakens.

On the daily time frame, the ETH/USD price has been contained inside an ascending channel. But it has fallen below the lower trendline after some selling pressure in the wake of Republican opposition to Democrat amendments proposed in the CLARITY Act bill in the Senate.

If the downtrend is extended and Ethereum price also falls below $2,380, then ETH may reach the support at $2,200 again.

RSI is tipped down, which is a bearish long term Ethereum price prediction. The RSI line is also on the verge of a move below 50, which would confirm that ETH price is facing a strong bearish trend.

The shrinking red length of the red AO bars also indicates that bears are tightening their grip and this could bring Ethereum price close to the $2,200 support.


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