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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.