Global markets are exhibiting renewed concern over inflation risks as central banks consider reverting to more restrictive monetary policy measures. The 10-year US Treasury yield has reached its highest level in approximately one year, while the 2-year US Treasury yield has climbed to a zone near 4.08%. This environment indicates that market participants are pricing in potential interest rate hikes ahead of upcoming Federal Reserve decisions.
The Ethereum price is currently navigating a consolidation pattern, reflecting significant market uncertainty. According to technical analysis, the cryptocurrency is trading beneath its 200-day Simple Moving Average (SMA), reinforcing bearish sentiment. The immediate resistance near $2,400 has not been breached, and reclaiming this benchmark is necessary for re-establishing a sustained bullish trajectory.
The CME FedWatch Tool shows that there is a 42% chance of an interest rate hike above 4% for the March 2027 meeting. This backdrop is weighing on high-risk assets such as cryptocurrencies, leading to a systematic rotation into high-quality, defensive instruments like sovereign bonds and traditional reserve currencies.