The Federal Reserve's recent move has a quite subtle impact on Ethereum's price trend. In the short term, it's mainly a sentiment game—once the news breaks, everyone rushes in to buy and then quickly exits; whether ETH can go further still depends on macro liquidity, on-chain fundamentals, and the regulatory stance.

The FOMC meeting on December 10th resulted in a 25 basis point rate cut, bringing the federal funds rate to the 3.75%-4.00% range. Market liquidity is expected to loosen, and assets with risk appetite should benefit accordingly. When the news first came out, ETH indeed responded positively, soaring to $3,445, indicating investors' optimistic expectations about easing policies.

However, the next day, the trend changed. Early on December 11th, the price retreated to around $3,270, losing about a hundred dollars in less than a day. This correction caught many leveraged longs off guard—the gap between expectations and reality was large, and high-leverage positions couldn't withstand it, forcing liquidations. Data showed that on that day, the total liquidated position amount reached $350 million, with large-scale wipeouts of high-leverage positions.

But looking at the longer-term cycle, the overall direction of rate cuts remains bullish for risk assets. Reviewing the easing cycle from 2019 to 2020, Bitcoin and Ethereum both experienced significant gains. In a liquidity-rich environment, cryptocurrencies have historically performed well.