As the FOMC meeting approaches, Ethereum's sentiment falls.

“Ethereum had an up and down Sunday, jumping above $1,640 before dipping back down to $1,540,” the market insight provider explained. The trading community is still skeptical of the hype and expects prices to fall ahead of the FOMC meeting. ETH is expected to remain volatile.

The FOMC, as part of the Federal Reserve (Fed), determines the direction of monetary policy, and it has recently resorted to interest rate hikes. For example, interest rates were raised by 75 basis points (bps) last month, the largest increase in 28 years.

With the FOMC meeting scheduled for July 27, all indicators point to a similar increase in interest rates. Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, recently stated:

“The Fed is slamming commodities and risk assets with a sledgehammer.” The three C's - crude oil, copper, and corn - are down about 20% since the June 75 bps rate hike, and the aftermath of another 75 in July may be similar. The stock market could be more volatile than crude.

Meanwhile, according to crypto analyst Ali Martinez, Ethereum should hold $1,550 in order to avoid a pullback because it is a significant support level.

He mentioned:

“According to transaction history, Ethereum formed a significant demand wall at $1,550, where over 586,000 addresses previously purchased nearly 5.1 million ETH.” Failure to maintain above this critical support level could result in a correction to $1,300.

According to CoinMarketCap, the second-largest cryptocurrency was down 4.95 percent in the last 24 hours, with a price of $1,522 during intraday trading.

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