Hawkish Fed Expectations Push Ethereum Towards $1,500 Threshold

Ethereum's price has declined by 2.43% to $1,573, bringing it closer to the psychologically significant $1,500 threshold.

The downward trend is attributed to rising expectations of a more hawkish Federal Reserve, which could lead to further monetary tightening and increased selling pressure on high-risk assets like cryptocurrencies.

Data from the US Bureau of Economic Analysis shows that the PCE Price Index accelerated from 3.8% in April to 4.1% in May, putting pressure on the Fed to contain inflation.

Market participants have priced in a higher probability of rate hikes at upcoming Federal Reserve meetings, with a 48.5% chance of a 25-basis-point increase in September and a 71.7% likelihood of at least one rate hike by October.