Ethereum (ETH) is showing signs of a potential trend reversal as financial markets brace for a major tariff announcement by former US President Donald Trump.
Market Signals Indicate ETH’s Downtrend Is Over
With the “Liberation Day” tariffs expected to be announced today and aimed at countering unfair trading practices, a shake-up could be experienced in the crypto markets, potentially pushing ETH into a leadership role.
Ethereum has largely underperformed Bitcoin (BTC) throughout its ongoing bull run, but technical indicators suggest that could change.
- Seller Fatigue at March Lows: ETH tested a 16-month low of $1,755 on March 11 but failed to break lower, signaling that selling pressure may be abating. The price has since risen to $1,880, forming a potential double bottom pattern with key resistance at $2,104. If broken, ETH could rally toward $2,400, according to the measured movement method.
- Bullish Momentum Divergence: The divergence between ETH’s price and its 50-day simple moving average (SMA) has shown a higher low, even as ETH revisits the previous low. This divergence suggests that downward momentum is weakening as prices are falling, supporting a potential reversal.
- The Line Breakout Chart Turns Bullish: The three-line breakout chart, which helps identify trend reversals, has turned positive after a long downtrend that saw ETH drop below $2,000. While the previous bullish signal in early March ended in a bear trap, this time the reversal is supported by multiple seller exhaustion indicators.
Will ETH Boost the Crypto Market?
If Trump’s reciprocal tariffs are less severe than expected, risk appetite could return, allowing ETH to gain momentum and possibly outperform BTC in the short term. However, if trade tensions escalate, broader market volatility could override these bullish signals and lead to further declines.
For now, traders are eyeing $2,104 as a critical breakout level that could pave the way for ETH’s next rally.
*This is not investment advice.
