FUNDAMENTAL OVERVIEW Ethereum faced some strong selling pressure yesterday after expectations for the Clarity Act cloture vote deteriorated ahead of the Senate vote. The vote ultimately failed, as reported here. With Congress likely to become even more divided following the midterm elections, there is little prospect of comprehensive crypto market structure legislation moving forward again this year. The regulatory setback added to the pressure on Ethereum, which briefly spiked to the key $2,360 support.The attention now turns back to the macro backdrop, with today's FOMC decision being the next major catalyst. The reaction could be significant if the Fed's decision differs from what markets are currently expecting. The consensus is for a 25 bps rate hike, with one or two dissenting policymakers favouring no change. This meeting will also bring the latest Summary of Economic Projections (SEP) and Dot Plot.The focus will be mainly on the Dot Plot, with the Fed expected to signal two additional rate hikes, one in 2026 and another in 2027. That would still imply a less aggressive path than current market pricing, which reflects three additional hikes through the end of 2027. Fed Chair Warsh is not expected to provide forward guidance and should instead reiterate the message delivered at Jackson Hole.A projection for three or more additional hikes would represent a hawkish surprise and could put further pressure on Bitcoin. On the other hand, if the Fed signals only one or two additional hikes, markets could interpret the outcome as dovish, potentially providing support for Ethereum.The Middle East developments will also remain in focus. Oil prices continue to trade above $100, keeping inflation concerns elevated as disruptions worsen. Oil prices have been a major driver of broader market moves recently, meaning any signs of de-escalation in the Middle East could push oil lower and trigger a dovish repricing. That could ultimately provide a positive catalyst for Ethereum.For now, the macro backdrop remains a headwind and should continue to limit Ethereum's upside. A meaningful shift would likely require either signs of de-escalation in the Middle East or a dovish FOMC outcome, which could create the conditions for Ethereum to break out of the monthly range and reach new highs. ETHEREUM TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that Ethereumprobed above the 2,560 resistance two times but failed to sustain the breakout and eventually dropped all the way back to the 2,360 support. We can expect the buyers to continue to step in around the support with a defined risk below it to keep targeting a break above the resistance. The sellers, on the other hand, will want to see the price breaking below the support to pile in for a drop into the major upward trendline around the 2,100 level.ETHEREUM TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see more clearly the rangebound price action we’ve been experiencing for almost a month. The market participants will continue to play the range by buying at support and selling at resistance until we get a breakout on either side.ETHEREUM TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have a minor resistance zone around the 2,460 level. If we get a pullback into the minor resistance, we can expect the sellers to step in there with a defined risk above it to position for a drop back into the support targeting a breakout. The buyers, on the other hand, will look for a break higher to extend the rally into the major resistance. UPCOMING CATALYSTSTodaywe have the FOMC rate decision. Tomorrow, we get the US Jobless Claims figures. Traders will also keep a close eye on developments in the Middle East. This article was written by Giuseppe Dellamotta at investinglive.com.