Ethereum’s 3.7% drop over the last 24 hours looks negative on the surface, but zooming out tells a very different story. This move is not a trend reversal. It is the cooldown after a strong pre-Fed rally that had already priced in good news.
Ahead of the Federal Reserve meeting, ETH climbed between 7% and 9%, pushing back above the $3,300 level as traders positioned for a supportive macro signal. When the Fed delivered a widely expected 25 basis point rate cut but paired it with cautious forward guidance, the market responded in the most predictable way possible.
It sold the news.
Ethereum moved from around $3,324 to a local high near $3,372, then slid to roughly $3,201. Volume stayed elevated at more than $35 billion, and ETH’s market dominance held steady near 12.6%. Those numbers point to profit-taking, not panic.
The broader market reinforces this view. Total crypto market capitalization fell about 2.8%, derivatives open interest dropped close to 4%, and trading activity jumped as traders reduced exposure. This was a marketwide reset after a macro event, not an Ethereum-specific failure.
Why the Pullback Does Not Break Ethereum’s Bullish Setup
To understand why this dip matters less than it looks, you have to look at what powered the rally in the first place. That foundation is still intact.
Large holders continue to accumulate. Wallets holding 10,000 ETH or more have added over 800,000 ETH in the past 30 days, worth more than $2.4 billion at average prices near $3,100. This buying happened during periods of weakness, which suggests supply is moving into long-term hands rather than preparing to exit.
Institutional demand has only strengthened that trend. Spot Ethereum ETFs recorded roughly $178 million in inflows on December 9, beating Bitcoin ETFs on the day. ETH held on centralized exchanges has fallen to about 8.7% of total supply, the lowest level since 2015, tightening available liquidity.
Ethereum ETF assets under management have risen from about $16.9 billion to over $19 billion in just a week, showing that regulated capital is still moving in.
Technically, Ethereum has reclaimed key moving averages and the ETH/BTC pair has broken a multi-month downtrend. These shifts often precede periods of sustained outperformance. None of that changed during the last 24 hours.
What did change was short-term positioning. Leverage came off, funding rates softened, and price drifted toward the $3,200 support zone. Social sentiment remains slightly bullish, ETF inflows continue despite the dip, and Ethereum’s share of the total crypto market has increased over the past week.
The takeaway is simple. This was a pause, not a breakdown. Ethereum is digesting gains after a strong rally and a cautious Fed. The buyers have not left. The bid is still there.
