Ethereum hovers near technical supports as macro headwinds persist

The crypto market is feeling the pressure from a difficult macro environment, with Ethereum trading in a narrow band around major technical levels.

Geopolitically, the landscape is static. US-Iran talks have stalled and hostilities between Saudi Arabia and the Houthis continue.

With crude prices again trading above $100, the Federal Reserve is limited to an increasingly aggressive stance due to elevated inflation. Simultaneously, fears over economic growth are moving to the forefront. These conditions combine to form a difficult environment for risk assets such as Ethereum.

The key event on the calendar for this week is Friday's release of the US Flash PMI data, unless a surprise deal emerges from the US-Iran talks in the meantime.

Should the figures fall short of expectations, fears about growth will probably mount, potentially triggering another sell-off in ETH. Stronger-than-expected data could spark a short-lived relief rally, but it would not alter the broader outlook, as it would simply underscore the justification for further interest rate increases.

Ethereum is consolidating around the crucial 2,360 support level and a trendline.

Buyers are expected to continue defending these positions, setting risk below the trendline, while keeping the 3,400 level as their target. Sellers are looking for a break to the downside, which would open the path to new lows, with a 1,900 target coming next.

A descending trendline defines the bearish structure on the 4-hour view.

Sellers continue leaning on this line, managing risk above it, aiming for a break below the major upward trendline. Buyers require a break higher, eyeing the 2,570 level as the first target.

On the 1-hour timeframe, buyers step in around the support and upward trendline, or wait for a break above the downward trendline to set up fresh highs.

Sellers need a break below the rising trendline to unlock new lows. The red lines mark today's average daily range.

Key data releases lie ahead for the market.

Thursday brings the weekly US Jobless Claims report, and Friday rounds out the week with the US Flash PMI release.