Ether Eyes Rebound as Market Awaits Clarity on Trump’s Tariff Strategy
Ether (ETH) could emerge as a leader in the crypto market if President Donald Trump’s upcoming trade announcement turns out to be less aggressive than feared.
All eyes are on Wednesday, when Trump is expected to unveil a new wave of reciprocal tariffs aimed at what he calls unfair trade practices by foreign nations. The decision could have sweeping implications across asset classes — including crypto.
Ether Hints at Recovery Amid Market Jitters
Despite trailing bitcoin for most of the ongoing bull run, ETH is now showing early signs of a potential turnaround. After last week’s dip, which saw ether retest its March 11 low of $1,755, sellers have struggled to push the price any lower — a possible indication of weakening bearish pressure.
Since that low, ETH has rebounded to around $1,880, forming a possible double bottom pattern. If the price can break through resistance at $2,104, it would validate the bullish formation, with $2,400 identified as the next target based on the measured move method.
Momentum Divergence Signals Waning Bearish Strength
Adding weight to the recovery narrative, technical indicators are flashing positive signs. Even though prices revisited March lows, the histogram tracking the difference between price and the 50-day simple moving average (SMA) didn’t drop in sync — instead, it formed a higher low. This bullish divergence points to declining downside momentum.
Three-Line Break Flips Bullish
A significant shift in sentiment is also reflected on the three-line break chart, which has turned bullish after weeks of red bars. The latest green candle on the daily chart suggests a potential trend reversal, reinforcing the argument that ETH’s downtrend may be reaching exhaustion.
While a similar flip in early March turned out to be a false start, the current setup appears more convincing due to stronger confirmation across multiple technical indicators.
But Macro Risks Still Loom
Despite the technical optimism, broader macroeconomic factors remain a wildcard. If Trump’s tariffs trigger widespread risk aversion, all bullish signals could quickly unravel, pushing ETH and the broader market into deeper correction territory.
For now, investors are cautiously optimistic, watching for a possible breakout — but also bracing for potential volatility if geopolitical tensions escalate.
