Ethereum Price Trend Analysis, a decline risk may occur in mid-month!

Regarding the Federal Reserve Chair change on May 15, the market generally worries that it may trigger panic selling, mainly due to fears of the "Wash Effect."

Core concern: liquidity tightening
Kevin Warsh, the expected successor, has consistently advocated for aggressively shrinking the Federal Reserve's balance sheet (i.e., "balance sheet reduction"). The market refers to this expectation as the "Wash Effect," with the core concern being that liquidity in financial markets will accelerate tightening. For highly liquidity-sensitive risk assets like Ethereum, liquidity tightening is a significant negative factor.

Market response already evident
This concern is not unfounded. As early as late January 2026, when Warsh was nominated, the cryptocurrency market experienced a "bloodbath," with Ethereum's single-day drop exceeding 11%. Recently, as the May 15 transfer date approaches, market anxiety has risen again. The US 10-year Treasury yield has risen to a high of 4.75%, and valuations of highly leveraged growth tech assets have generally corrected, which also puts downward pressure on Ethereum.

Possibility of panic selling
Overall, around May 15, there is a significant possibility that market panic selling and declines may be triggered by expectations of the "Wash Effect." Investors are pricing in the potential end of the "cheap money era," which will lead to increased asset price volatility. $ETH