Ethereum under pressure as Trump's Iran stance fuels risk-off mood

Ethereum's decline deepened after Donald Trump posted on Truth Social that the US does not require a deal with Iran, prompting renewed risk aversion across financial markets.

The US dollar and bond yields rose following his comments, which intensified inflation worries and expectations of further interest rate increases.

This persists in creating a tough climate for riskier assets as real yields climb and financial conditions tighten, potentially leading to an economic slowdown.

At present, the macroeconomic picture remains unfavourable for Ethereum. A meaningful advance in US-Iran talks or a shift toward looser Fed policy would likely be needed to spark a recovery in the cryptocurrency.

ETHEREUM TECHNICAL ANALYSIS – DAILY TIMEFRAME

On the daily chart, Ethereum has continued its selloff and ultimately reached the 1,900 level. Buyers are expected to step in around these levels, with a clear risk below 1,850, aiming for a move to the 3,400 resistance, with the downward trendline as an initial target. Meanwhile, sellers will look for a break lower to build bearish positions toward the 1,500 level next.

ETHEREUM TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME

On the 4 hour chart, a downward trendline defines the bearish momentum. Should a pullback occur, sellers are anticipated to use the trendline as resistance, with a clear risk above it, to continue targeting the 1,500 level. Conversely, buyers will need a break higher to extend the pullback toward the major downward trendline.

ETHEREUM TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME

On the 1 hour chart, there is little additional information, as sellers have a better risk-to-reward setup near the trendline, while buyers require a breakout to open the path to new highs. The red lines define the average daily range for today.

UPCOMING CATALYSTS

Later today, the week concludes with US PPI data.