Ether’s Impressive Rise Amid Market Anticipation
Ether (ETH) experienced a remarkable surge of nearly 7% in just 24 hours, positioning it as the leading gainer among major cryptocurrencies. This uptick comes as traders eagerly await the results of the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday.
Memecoins Join the Party
In tandem with Ether’s gains, the popular memecoin Dogecoin (DOGE) also saw a 4% increase. Historically, DOGE has shown a tendency to move in correlation with ETH. Other Ethereum-based memecoins, such as Pepe (PEPE) and Mog (MOG), recorded over 5% gains, indicating their role as leveraged bets in the current market dynamics.
Major Cryptocurrencies on the Rise
Other major cryptocurrencies including XRP, BNB from the BNB Chain, Solana’s SOL, and Cardano’s ADA all experienced a 3% increase. In contrast, Tron’s TRX saw a slight dip after previously surging by 5% earlier in the day, influenced by increased memecoin trading activity on its blockchain following a no-fee update on the Sunpump platform.
Bitcoin Holds Steady Ahead of FOMC Meeting
Bitcoin (BTC) rose by 2% but remained stable under the $84,000 mark during the Asian evening hours. Traders are closely monitoring the $80,000 support level; a drop below this threshold could signify a critical breakdown in support.
ETH/BTC Ratio Signals Increased Demand for Ether
The ETH/BTC trading pair, which measures the value of Ether against Bitcoin, increased from 0.23 to 0.24 earlier in the day. This shift indicates a growing demand for Ether as traders opt for the perceived risk of ETH over the safety of Bitcoin.
Upcoming Pectra Upgrade Promises Improvements for Ethereum
Ether’s rise does not appear to be driven by any immediate catalysts; however, Ethereum is gearing up for several technical upgrades. The upcoming Pectra upgrade, which is currently undergoing testing, aims to enhance scalability, staking, and overall user experience. This upgrade includes over 20 Ethereum Improvement Proposals (EIPs), such as EIP-7702, which introduces smart account functionality, and EIP-7251, which raises validator staking limits to 2,048 ETH.
Testing for the Pectra upgrade began on the Holesky testnet in February 2025, followed by testing on Sepolia in March. However, the process faced challenges, including transaction processing issues related to client incompatibilities. A new testnet named Hooli was launched on March 17, with Pectra testing scheduled for March 26. If successful, the mainnet deployment is anticipated for late April or early May 2025.
Market Sentiment and Economic Outlook
As traders assess market conditions, analysts from Singapore-based QCP Capital noted that while Bitcoin has found support at $80,000, this level appears fragile amid broader economic uncertainties. They emphasized the challenges in identifying strong market drivers that could reverse current trends.
The analysts are particularly focused on any dovish shifts in the FOMC’s stance regarding growth and inflation expectations. They believe that the Federal Reserve will adopt a “wait-and-see” approach, especially given the delayed impact of tariffs on the economy.
Gold’s Surge and Bitcoin’s Divergence
In other market developments, gold prices surpassed $3,000 earlier on Wednesday, prompting discussions about an inverse correlation between gold and Bitcoin. Ryan Lee, Chief Analyst at Bitget Research, highlighted this divergence, stating that despite Bitcoin’s historical correlation with gold as a hedge, it is currently behaving more like a risk asset. This shift is driven by uncertainties surrounding Fed policy, profit-taking, and a movement towards traditional safe havens.
Lee concluded that the outcome of the FOMC meeting could either catalyze a recovery in Bitcoin prices if dovish, or exacerbate the ongoing correction if hawkish. He stressed that Bitcoin’s short-term trajectory is closely tied to broader economic signals rather than solely reinforcing its role as “digital gold.”
