The recent bullish run of Ethereum has hit a pause, with prices dropping to lows of $2,080 on Monday. This is attributed in part to statements by US Federal Reserve officials regarding another rate hike in the upcoming May policy rate meeting. The withdrawal of Ethereum staking contracts have consistently exceeded deposits, potentially adding sell pressure to the asset. The successful Shanghai upgrade, which enabled withdrawals of staked ETH from the proof-of-staking chain, had propelled Ethereum to new yearly highs above $2,129. However, statements from Fed officials that hinted at another rate hike in May strengthened the dollar, which can have a negative impact on more risky assets such as cryptocurrencies and stocks. Another rate hike may make the dollar a more attractive investment, potentially diminishing the appeal of top cryptocurrencies like Ethereum to investors seeking stable yields. It remains to be seen whether Ethereum can regain its bullish momentum in the face of possible market headwinds.

The US Bureau of Labor Statistics (BLS) has reported that the country added 236,000 jobs in March, slightly below economist forecasts for 239,000. Meanwhile, the unemployment rate fell to 3.5% from 3.6% in February, beating expectations for 3.6%. February's gain of 311,000 jobs was also revised higher to 326,000. The report is the final one the US Federal Reserve will see ahead of its May meeting, at which it will decide whether to continue tightening monetary policy or pause its series of rate hikes. Short-term rate futures markets were pricing in a two-in-three chance the Fed would pause in May.

The recent pause in US interest rate hikes could potentially kickstart a Bitcoin rally in May. The article notes that historical charts indicate a pattern of Bitcoin price increases following interest rate pauses by the US Federal Reserve.

The United States Federal Reserve is taking more steps to help stabilize the economy, with the nation’s central bank coordinating action with other central banks. In a press release issued on March 19, the Federal Reserve stated that it was working with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank.

Matter to be considered: Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.