**Ethereum Price Forecast: Will Institutional Demand Push ETH Back Above $4,000?**
**Market Context: Caution Ahead of FOMC Meeting**
The cryptocurrency market is trading in the red ahead of today’s highly anticipated Federal Open Market Committee (FOMC) meeting. As investors await the US Federal Reserve’s decision on interest rates, Bitcoin has slipped below $119,000, while Ethereum (ETH) has dropped 2% in the last 24 hours, breaking below the $3,800 level.
**ETH’s Daily Level Holds Strong at $3,730**
Despite the current bearish sentiment, Ethereum’s daily level remains strong at $3,730. This level has been a key support zone for the cryptocurrency, and a bounce back above $3,800 could be on the cards. In fact, growing institutional demand could be the catalyst that propels ETH back towards the $4,000 mark.
**Institutional Demand on the Rise**
In recent weeks, institutional investors have been increasingly bullish on Ethereum. The cryptocurrency’s decentralized finance (DeFi) ecosystem and growing adoption in the non-fungible token (NFT) space have made it an attractive investment opportunity. As more institutions enter the market, the demand for ETH is likely to increase, driving up prices.
**Technical Outlook**
From a technical perspective, Ethereum’s daily chart shows a clear downtrend, but the Relative Strength Index (RSI) is approaching oversold territory. This could indicate a potential reversal in the near term. If ETH can break above the $3,800 level, it may be poised for a bigger rally towards $4,000.
**Conclusion**
While the cryptocurrency market is bearish ahead of the FOMC meeting, Ethereum’s strong daily level and growing institutional demand could be the catalyst for a rebound. As the market awaits the Fed’s decision, investors will be closely watching ETH’s price action. Will Ethereum push back above $4,000? Only time will tell.
