Hawkish Fed Boosts Dollar as Ethereum Tests Crucial $1,680 Support

The market is digesting a massive geopolitical shift alongside a stubbornly hawkish Federal Reserve. A surprise preliminary peace agreement between the U.S. and Iran, which reopened the Strait of Hormuz, sent crude oil prices plunging and erased a massive chunk of the geopolitical risk premium [1][2]. This sudden relief in energy markets provided a tailwind for equities, helping major indexes brush off broader inflation fears. However, the macro environment remains highly restrictive. A hawkish Fed press conference led by Warsh triggered a sharp rise in short-term Treasury yields, pushing rate cut expectations further down the road [3]. This dynamic supercharged the US…