Ethereum Tumbles on Macro Headwinds, But US-Iran Hopes Spark Rally

The Ethereum price has been struggling due to macroeconomic headwinds, but hopes of a US-Iran breakthrough have limited the downside. The positive risk sentiment stemming from declining oil prices had previously supported the crypto market, easing inflation and rate hike concerns. However, Trump's recent remarks on the Iran war poured cold water on expectations of an early end to the conflict, causing oil prices, Treasury yields, and the US dollar to rise again.

Yesterday, however, optimism returned following news that Iran has put forward a proposal to reopen the Strait of Hormuz within seven days if certain conditions are met. A breakthrough would be positive for Ethereum, as aggressive rate hike bets may be pared back on easing inflation concerns. A prolonged stalemate or re-escalation, on the other hand, will likely continue to put pressure on the crypto market.

On the technical side, the Ethereum price has been pulling back in recent days due to negative macro conditions. The daily chart shows a major upward trendline around $2,560 support, which is a strong technical zone. If the price pulls back into this support, buyers may step in with a defined risk below the trendline to position for a rally into the $3,000 level.