Introduction BitMorpho Daily News & Fundamentals Report: ETH Date: Thursday, December 11, 2025 Good morning, crypto observers. After yesterday's pivotal Federal Open Market Committee (FOMC) meeting, the market is digesting the implications today, causing immediate turbulence for Ethereum (ETH) and the broader digital asset space. ETH is currently trading around the 3,188 to 3,200 level, reflecting a pullback of approximately 3.74% in the last 24 hours, following the Fed's decision. The primary market driver remains the Fed's 25 basis point rate cut, bringing the federal funds rate to a range of 3.50% to 3.75%. While the cut itself was largely expected, the ensuing cautious forward guidance from the FOMC, signaling a "higher bar" for further easing in 2026, has tempered risk appetite, causing an initial sell-off in crypto despite a positive reaction in equities. On the fundamentals front, while macroeconomic headwinds persist, on-chain data suggests underlying confidence remains strong. Reports indicate that Ethereum whales have been aggressively accumulating, with some large investors adding over 800,000 ETH in the past month. Furthermore, valuation debates continue, with notable figures arguing that ETH should be valued more like an early-stage, high-growth technology company such as Amazon rather than a mature stock, treating its fee revenue as akin to profit. This fundamental strength is being tested today as ETH navigates post-FOMC volatility, needing to hold key support levels to maintain recent bullish structure. We will be closely monitoring capital flows as the market recalibrates to the Fed’s data-dependent stance. News Analysis This morning, Ethereum (ETH) is experiencing a quiet hangover from yesterday’s macroeconomic announcement, trading in a tight range near 3,188–3,200 after recording a 3.74% dip over the last 24 hours. The market is clearly in a phase of digestion following the Federal Open Market Committee's (FOMC) widely anticipated 25 basis point rate cut, which has now set the federal funds rate between 3.50% and 3.75%. While the rate cut itself signaled a shift toward easier policy, the Fed’s subsequent cautionary stance regarding future easing in 2026 has prompted a risk-off sentiment across broad markets, causing crypto assets like ETH to retreat from recent highs. On-Chain Conviction vs. Macro Headwinds Despite the immediate price action reflecting macroeconomic caution, the underlying on-chain data for Ethereum continues to present a strong bullish case, suggesting that major capital players are seeing current price levels as a significant accumulation opportunity. Reports indicate that wallets holding between 10,000 and 100,000 ETH have aggressively added over 800,000 ETH in the past month alone. Further supporting this is data showing that whale and shark wallets collectively acquired approximately 934,240 ETH, valued at about $3.15 billion, over a recent three-week period. This massive accumulation by sophisticated investors contrasts sharply with selling pressure from smaller retail holders. Furthermore, the supply structure of ETH is tightening significantly, with only about 8.7% of the total circulating supply remaining on centralized exchanges a five-year low. Over 40% of the total supply is now locked in staking contracts, custody funds, and long-term vaults, reducing immediate selling pressure and reinforcing investor conviction in long-term yields and network security. Ecosystem Update: Fusaka Upgrade Solidifies Scalability The network's technical foundation has also seen a major recent boost. The Fusaka upgrade, which went live on December 3rd, is acting as a core fundamental catalyst. This infrastructure-focused update introduced PeerDAS and the Blob-Parameter-Only (BPO) mechanism, which significantly increases blob throughput the data capacity for Layer-2 rollups. The primary benefit realized post-Fusaka is a more predictable and lower-fee environment for rollup operators, with average gas fees for blob transactions falling by over 35% compared to pre-upgrade averages. This enhancement reinforces Ethereum's position as the premier settlement layer, especially as institutional asset managers like BlackRock and Amundi continue to build tokenized products on the network. The upgrade shifts the network's focus to cementing its L2-centric scaling roadmap. Regulatory Clarity and Institutional Flow On the regulatory front, a backdrop of increasing clarity in 2025 has provided a tailwind for institutional interest. While the immediate market reaction to the FOMC was muted, the general trend of regulatory progress including movement on comprehensive digital asset legislation and clarification on staking activities has lowered institutional barriers to entry. Reports have also pointed to ongoing bullish positioning from "smart whales," with massive long positions opened, signaling anticipation for a potential breakout toward the $4,000 level, provided macro conditions cooperate. In fact, some analysts have noted that ETH is currently leading the broader market rally against Bitcoin, suggesting strength in its own fundamentals. Community Sentiment: Cautious Optimism Community sentiment post-FOMC is characterized by cautious optimism rather than euphoria. While the rate cut was priced in, Chair Powell’s data-dependent language dampened the aggressive risk-on rally that some expected. The market is now waiting to see if the Fed’s acknowledgment of rising labor-market risks will translate into further dovish policy, which historically favors risk assets like ETH. The current price dip is being viewed by many long-term participants as a "trap" or temporary volatility where major players are using retail hesitation as an opportunity to accumulate. Traders are now closely watching key support levels, knowing that the technical structure remains constructive if accumulation continues below the $3,200 mark. Outlook Conclusion: Macro Caution Overshadows Strong On-Chain Fundamentals for Ethereum Ethereum is currently caught in a tug-of-war between immediate macroeconomic headwinds and robust, long-term on-chain conviction. Despite the 3.74% retreat over the last 24 hours, settling ETH near the 3,188–3,200 band following the FOMC's rate decision, the underlying sentiment among large capital holders remains overwhelmingly positive. The aggressive accumulation of over 800,000 ETH by mid-to-large-sized wallets, alongside a historic low supply parked on exchanges (8.7%), signals strong belief in future appreciation. This tightening supply dynamic, reinforced by over 40% of ETH staked, strongly suggests that institutional and sophisticated investors view the current price consolidation as a prime buying opportunity. The overall outlook remains Mixed in the short term, as the market digests the Fed’s dovish tone tempered by cautious forward guidance. For the next 24-48 hours, investors should closely monitor whether the current price range can hold as a support level. A sustained hold above $3,180, coupled with continued positive momentum from the ecosystem (like the Fusa update mentioned), could signal a successful absorption of macro uncertainty and a resumption of the upward trend. Conversely, a break below this key level could invite further short-term profit-taking. *Disclaimer: This report is for informational purposes only and does not constitute financial advice. Always conduct your own research.*