ETH/USD Forecast: Ethereum Stabilizes at $2,125 as Fed Minutes, Foundation Crisis and Iran Vote Shape Outlook

April's Consumer Price Index rose from 3.3% to a three-year peak of 3.8% year-on-year — above the 3.7% forecast — while the Producer Price Index accelerated from 4.3% to 6.0%. The labor market remained resilient throughout, giving policymakers the room to pivot toward actively combating inflation, including potential monetary tightening if necessary. Today at 20:00 (GMT+2), the minutes of the Fed's most recent meeting will be released, which are expected to shed light on officials' sentiment and forward intentions. Additional downward pressure on Ethereum comes from a governance crisis at the Ethereum Foundation: several key executives have departed over the past few months, with Carl Beik and Julian Ma joining the exodus on Monday — deepening investor concern about the effectiveness of the leadership guiding the world's second-largest blockchain.

Nevertheless, the negative momentum has paused following a series of positive developments for the digital asset market. The Senate approved by 50 votes to 47 a resolution limiting President Donald Trump's authority over the confrontation with Iran, requiring the White House to seek Congressional approval before resuming military operations against the Islamic Republic. Trump may veto the bill even if it passes the House of Representatives, but the mere fact of its passage has bolstered market hopes for Middle East stabilization and increased risk appetite. Positive sentiment in the crypto community has also been lifted by an executive order directing the Federal Reserve to evaluate the legal, regulatory, and policy framework governing fintech and cryptocurrency companies' access to banking payment services. Any barriers preventing digital sector businesses from accessing traditional banking services are to be removed, and officials are asked to consider options for expanding such access to the extent permitted by law, provided appropriate risk management standards are met. Analysts note that broad crypto company access to payment systems and custodial services could significantly boost institutional investor confidence and digital asset liquidity.

Support and Resistance Levels

The pair has stabilized around 2,125.00 (Murray [2/8]) but may continue lower toward 1,875.00 (Murray [–2/8]) and 1,481.60 (Murray [2/8], W1). An upside breakout of the Bollinger Bands middle line at 2,250.00 (Murray [4/8]), however, would likely trigger a recovery toward 2,500.00 (Murray [8/8]) and 2,770.00 (Fibonacci retracement 61.8%).

Technical indicators are maintaining a sell signal: the Bollinger Bands are turning downward, the MACD histogram has crossed into negative territory, and the Stochastic is flat near the oversold zone.

Resistance levels: 2,250.00, 2,500.00, 2,770.00.

Support levels: 2,125.00, 1,875.00, 1,481.60.

ETH/USD Trading Scenarios and Price Forecast

Short positions can be opened from 2,080.00, targeting 1,875.00 and 1,481.60, with a stop-loss at 2,190.00. Time horizon: 5–7 days.

Long positions can be opened above 2,250.00, targeting 2,500.00 and 2,770.00, with a stop-loss at 2,130.00.