Ethereum Price Prediction – Stock Market Selloff Puts $1,564 in Focus Ahead of FOMC

Highlights:

• Ethereum falls as stock market weakness, long liquidations, and slowing ETF inflows weigh on short-term sentiment.
• ETH could rally if dovish FOMC signals or progress on the CLARITY Act revives institutional and retail demand.
• Ethereum risks falling to $1,564 if bears break the $1,830 support, while $1,952 remains the key resistance level.

Ethereum (ETH) is in the red today as the broader cryptocurrency market extends its selloff. At the time of writing, Ethereum was trading at $1,879.65, while trading volume had surged 26.11% to $12.82 billion. Rising trading volume during a price decline suggests sellers are gaining control in the short term. It also reflects growing bearish sentiment across risk-on markets.

Stock Market Selloff Could Push Ethereum Price Lower

A major factor weighing on Ethereum is the ongoing selloff in global equity markets. Cryptocurrencies as an asset class remain closely correlated with U.S. stock indices. U.S. equities are trading lower, mirroring declines across South Korean and Japanese markets.

With Asian stock markets officially in recession, continued weakness in global equities could place even greater pressure on cryptocurrencies such as Ethereum. Since digital assets were already showing signs of weakness before the stock market decline, investors may become even more aggressive in reducing exposure to preserve capital.

South Korea's stock market is getting destroyed.

The KOSPI crashed 10.84% today.

Samsung and SK Hynix dominate the index, and both have been riding the memory-chip boom.

Now China is building its own chipmaking machines, and investors are betting that more supply will crush… pic.twitter.com/G02KYHXsEZ

— Niels (@Web3Niels) July 28, 2026

Long Liquidations Add to Ethereum’s Downside Pressure

Ethereum is also facing pressure from the unwinding of leveraged positions. Recently, there has been a surge in leveraged long positions in anticipation of Ethereum breaking above the $2,000. That breakout failed to materialize.

over $600m got liquidated from the crypto market in 24h

88% of the liquidations were longs

are we going lower from here? pic.twitter.com/DTue0yNqOT

— Evo (@EvoOnChain) July 28, 2026

As a result, two bearish forces are now driving the market. First, leveraged short sellers have entered aggressively, adding downward pressure to the price. Second, falling prices are triggering liquidations of leveraged long positions, creating additional selling pressure. If risk-off sentiment continues to spread across financial markets, increasing short interest could push Ethereum price below its recent lows.

Slowing Ethereum ETF Inflows Add to Bearish Sentiment

Slowing institutional demand is also contributing to Ethereum’s weakness. Ethereum ETFs attracted strong inflows for most of July. While inflows remain positive overall, the pace has slowed noticeably. The slowdown reflects growing investor caution amid geopolitical uncertainty and the bursting of a technology bubble in parts of Asia, which now appears to be spilling over into U.S. markets. With retail demand for cryptocurrencies already subdued, weakening institutional momentum could push Ethereum lower over the short to medium term.

FOMC and CLARITY Act Could Spark a Rebound

Despite the current market weakness, the upcoming FOMC decision and developments surrounding the CLARITY Act could trigger a sharp recovery. The Federal Open Market Committee is expected to announce its interest rate decision on July 29. While markets expect Fed Chair Kelvin Warsh to leave interest rates unchanged, investors will closely analyze his comments for clues about the future direction of monetary policy. Any dovish signals could provide a catalyst for Ethereum and the broader cryptocurrency market.

🇺🇸 FOMC INTEREST DECISION IS COMING TOMORROW

And the market still isn't fully convinced of what the Fed will do.

There's a 66% chance the Fed will hold rates, but a few are calling for a rate hike.

Citadel says that the Fed could surprise the market with a rate hike this week.… pic.twitter.com/PVome5nzcU

— The Macro Paper (@macropaperr) July 28, 2026

At the same time, expectations continue to build around the CLARITY Act. Any indication that the legislation could become law before August 7 may significantly improve market sentiment and drive a strong rally in Ethereum and other cryptocurrencies.

Technical Analysis – Ethereum Price Consolidates Within a Key Trading Range

Despite today’s pullback, Ethereum continues to consolidate between resistance at $1,951.8 and support at $1,830.7. If bulls regain control and push ETH above the $1,951.8 resistance level, a rally toward $2,418.3 could follow.

On the other hand, a breakdown below the $1,830.7 support level could send Ethereum to $1,564.7 in the short term. Of the two scenarios, a move toward $1,564.7 currently appears more likely due to the bearish turn in global equity markets, which continues to weigh on risk assets, including cryptocurrencies.