Ethereum came under renewed pressure after Federal Reserve Governor Christopher Waller surprised markets with decidedly hawkish remarks in a speech on the economic outlook. Waller argued that a rate hike in December would be warranted regardless of the latest inflation data, adding that the figures would only influence the magnitude of the increase. He went further, saying that a monthly Core CPI reading of 0.3% or higher would lead him to vote for a larger 50 basis point move.

The comments triggered a hawkish repricing across markets, sending Treasury yields and the US dollar higher. That shift weighed on risk sentiment and put downward pressure on Ethereum. Ethereum, the second-largest cryptocurrency by market value, trades as part of the broader risk complex, so shifts in yields and the dollar — key gauges of US financial conditions — reach it alongside equities and other risk-sensitive markets.

The subsequent inflation print then matched Waller's threshold: Core CPI came in at 0.3% month-over-month, driving Treasury yields and the US dollar still higher as expectations of a potentially larger rate hike intensified.

Meanwhile, there has been no change on the US–Iran front. Qatar said that it had secured at least two weeks for diplomatic efforts, while acknowledging that significant differences remain. That suggests expectations of an imminent agreement may need to be repriced, potentially leading to a rebound in oil prices and a more negative risk backdrop. Energy prices also feed into the inflation readings that investors weigh when pricing Fed policy, giving the diplomatic timeline an indirect line into the same rate-expectation debate.

For now, the macro environment remains negative for Ethereum unless there is a concrete breakthrough in US–Iran negotiations or a more dovish turn from the Fed. The next scheduled checkpoint is the Fed's December meeting, where the size of the move Waller has put on the table will be settled.

Ethereum Technical Analysis – Daily Timeframe

On the daily chart, Ethereum extended its losses, with the price slowly approaching the key 1,900 level. If it reaches that area, buyers could step in with a defined risk placed below the level to position for a rally into the 3,400 level, with the downward trendline as the first target. Sellers, on the other hand, will look for a break lower to add to bearish bets and target the 1,500 level next.

Ethereum Technical Analysis – 4 Hour Timeframe

On the 4 hour chart, a downward trendline continues to define the bearish momentum. In the event of a pullback, sellers may lean on the trendline with a defined risk above it, keeping the 1,900 level in their sights. Buyers, meanwhile, will want to see the price break higher to extend the pullback toward the major downward trendline.

Ethereum Technical Analysis – 1 Hour Timeframe

On the 1 hour chart, sellers have the better risk-to-reward setup around the trendline, while buyers need a breakout to open the door to new highs. The red lines on the chart define the average daily range for today, a measure explained in Investinglive's average daily range guide.

Upcoming Catalysts

Attention now turns to upcoming US data. The latest US Jobless Claims figures are due tomorrow, and the week wraps up on Friday with the US PPI release. Jobless Claims offer a timely read on the labor market, while PPI tracks price pressures upstream of consumer inflation — both inputs to the same rate-expectation framework Waller laid out. Both reports are listed on Investinglive's economic calendar.

Source: Investinglive