Ethereum at Risk of Double-Digit Declines As Rekindled Trade War Fears and Tariff Threats Cause Market Correction
Ethereum (ETH) is hard-pressed following President Trump’s rekindled tariff threats against the European Union and Apple, which prompted a market correction, sending ETH 3% lower to roughly $2,540. Although robust buying demand from US spot Ether ETFs and whales has thus far halted a complete bearish breakdown, Ethereum faces severe double-digit losses if it drops below the pivotal $2,500 support level. The recent price retreat is a reflection of a volatility shock due to concerns over trade wars rather than an inversion in market structure. But missing to hold major technical supports would see ETH fall back into the $2,100–$2,260 area, cooling its recovery momentum. KEY LOOKOUTS • Ethereum needs to hold above the $2,500 mark to prevent triggering major selling pressure and possible double-digit losses. • Breaking above this range is critical for ETH to get back into its uptrend and re-establish bullish momentum. • Fresh trade war concerns may boost volatility and selling pressure and impact ETH’s near-term price action. • Ongoing firm buying from giant holders and US spot Ether ETFs can play a key role in support against further sell-offs. H Ethereum’s near-term price action depends on maintaining the key $2,500 support level, as a fall below this would instigate heavy selling and propel the price toward the $2,100–$2,260 territory. On the long side, breaking above the resistance area of $2,750–$2,850 is key in reviving bullish pressure. Market sentiment is still weak in the face of renewed threats of tariffs from President Trump, which have revived concerns about a trade war and increased volatility. Nonetheless, robust purchasing power from whales and consistent flows into US spot Ether ETFs could potentially buffer Ethereum from steeper falls in the near future. Ethereum needs to stay above $2,500 to prevent further losses, with resistance at $2,750-$2,850 available for a reversal. Fears of renewed trade wars are adding to market volatility but continued whale support and ETF inflows can be the savior. • Ethereum (ETH) price fell 3% after President Trump threatened tariffs against the EU and Apple. • The $2,500 mark is a key support; breaking below it can result in double-digit declines. • Resistance is at $2,750-$2,850, which ETH needs to break above in order to pick up where it left off with its uptrend. • Fears of a renewed trade war have fueled market volatility and bearish sentiment. • Recent sell-offs have not destroyed the overall bullish market structure yet. • Whale investors and US spot Ether ETFs are displaying strong buying interest, acting as support. • Short-term technical indicators such as the MACD and Stochastic Oscillator indicate rising bearish momentum. Ethereum’s price has suffered after a fresh round of trade tensions reignited by President Trump’s threat of new tariffs on the European Union and Apple. The news has left the market in doubt, with investors playing it safe and sparking a wider sell-off among cryptocurrencies. This aside, Ethereum has been insulated by robust institutional investor interest from players such as big holders and US-based Ether ETFs, which provide a degree of stability amidst the chaos. ETHEREUM DAILY PRICE CHART CHART SOURCE: TradingView Ethereum’s outlook today is largely contingent on the direction of global trade tensions over the next few days. The crypto market may come under added pressure if risk-reassessment by investors continues to be fueled by apprehension of rising tariffs. Yet, continued support from top-tier investors and growing usage of Ethereum’s network and associated financial products could help the asset survive this bout of uncertainty. In summary, Ethereum is still a major player in the digital asset universe, but outside economic forces will have an impact on its short-term path. TECHNICAL ANALYSIS Ethereum is testing all-important support levels at $2,500, which are an important line in the sand for avert further losses. The price has recently encountered resistance at the $2,750 to $2,850 area, where selling pressure has invariably grown as investor break-even levels. Momentum indicators are weakening, with bearish indications that argue that recent correction may continue. But having strong dynamic supports like the 50-period moving average and ascending trendlines may keep losses in check, provided buying interest from large holders continues. A clean break below these supports would probably set the stage for deeper losses, but an effective bounce could indicate the resumption of the larger uptrend. FORECAST Ethereum manages to maintain above the key $2,500 support and breaks over the $2,750 to $2,850 resistance zone, it would indicate a fresh bullish momentum. Solid institutional investor inflows and sustained demand from large Ether holders could power the price even higher, potentially moving ETH to former highs. A break over this level would pull in additional buyers, supporting the rebound and paving the way for additional advances in the near term. Conversely, a breakdown below the $2,500 support level would invite selling pressure, sending Ethereum into a more severe correction mode. This would see it fall towards the $2,100 to $2,260 levels, marking double-digit losses from the current prices. New fears of trade wars and heightened market volatility can aggravate the risks of further declines, especially once investor mood turns negative. In this case, technical supports and buyers’ interest would be challenged, with scope for more weakness until confidence comes back.