Ethereum eyes strong May gains as BTC holds $76K amid Fed and Iran risk

Bitcoin (BTC) is struggling to hold $76,000 after the latest Fed decision and Chair Powell’s remarks. Rates are still expected to stay high (roughly 3.50%–3.75% through most of 2026), while geopolitical stress from Iran and rising oil (Brent targeting around $120) is pushing inflation expectations higher. Against this macro backdrop, analysts at DaanCrypto say Ethereum (ETH) may be set up for “May effect” gains. Historical data suggests May is an outlier month for Ethereum: ETH has often closed prior Mays in green, but the key feature is extreme volatility in both directions—crypto’s highest percentage volatility by the calendar. The article also highlights market positioning for Powell’s successor. With Warsh set to take over as Fed Chair at month-end, commentary implies a potentially more hawkish bias, shifting expectations from “cuts are coming” toward “cuts may not be easy.” Observers expect any breakthrough in Iran talks to likely occur in May, adding to headline-driven swings. For traders, the near-term implication is a volatility regime: Ethereum (ETH) could rally on seasonal effects, but BTC weakness near $76,000 and hawkish rate expectations raise the risk of sharp reversals. Disclaimer: Not investment advice.