Ethanol as an attractive oxygenated fuel is often blended with gasoline to yield beneficial anti-knocking performance. Due to the distinctions in fuel chemistry, the combustion behavior of gasoline-ethanol blends is not fully understood. This study investigated ethanol blending effects on auto-ignition and reaction wave propagation under engine-relevant conditions covering the negative temperature coefficient (NTC) region. Three ethanol blending levels (i.e., E10, E20, and E30 on a volume basis) were introduced into gasoline surrogates. Characteristic timescale analysis for homogeneous auto-ignition was conducted, and localized hotspot auto-ignition and reaction wave propagation was investigated for different gasoline-ethanol blends. Meanwhile, ethanol blending effects on detonation development were comparatively explored. The results show that ethanol addition significantly suppresses fuel reactivity for homogeneous scenarios, especially in low-temperature regions, manifesting prolonged timescales and diminishing NTC behavior. Despite this, different reaction wave propagation modes can be identified during transient auto-ignition and reaction wave propagation, including deflagration, detonation development, and thermal explosion. The detonation wave is always at an underdeveloped status under engine-relevant conditions, and the induced pressure characteristics are sensitive to initial temperatures, hotspot sizes, and fuel reactivity. Meanwhile, ethanol addition tends to promote transient detonation development by elevating the reaction front propagation speed inside the hotspot and enhancing the deflagration to detonation transition outside the hotspot. Such observations are not contrary to that ethanol yields beneficial anti-knocking performance because only chemical effects of ethanol blending are addressed, without considering vaporization cooling effects. The present work demonstrates that ethanol addition globally suppresses engine knocking, but it may induce stronger knocking intensity once end-gas auto-ignition and detonation development are initiated. The current study provides useful insights into ethanol perturbative effects on auto-ignition and reaction wave propagation from chemical perspectives.