Ethereum Gains 1.6% Amid China Tariffs, Eyes $1,900 Resistance
1min read Ethereum's price is currently hovering around $1,820, showing a modest 1.6% increase on Friday. This performance is relatively subdued compared to other major cryptocurrencies like Bitcoin, Solana, and XRP, which all saw gains exceeding 3%. However, the recent imposition of 34% tariffs on U.S. imports by China has introduced new volatility factors that could potentially accelerate Ethereum's upward momentum.
Markets reacted swiftly to China's unexpected tariff decision, with equities experiencing a dip in early trading. However, crypto assets remained largely resilient. This divergence suggests a potential shift in capital allocation, as investors seek alternative hedges in response to trade-related instability. Historically, such scenarios have favored Bitcoin initially, but Ethereum typically follows with steeper gains if the momentum continues.
The current geopolitical landscape bears similarities to 2019, when market turbulence from COVID-19 lockdowns led to increased capital inflows into cryptocurrencies. With global retaliation measures escalating following the tariff rollout, Ethereum's price could soon surpass the $1,900 resistance level and sustain a broader uptrend. Additionally, the Federal Reserve's latest policy meeting suggests another rate pause, which could further boost Ethereum's DeFi ecosystem. Lower traditional yields may drive investors to seek higher returns in DeFi, increasing demand for Ethereum.
Technical analysis indicates that Ethereum is forming a falling wedge pattern, which is historically bullish and suggests a potential 250% breakout toward $3,200. The price is currently testing the wedge's upper boundary near $1,900, and confirmation of this pattern requires a sustained close above this level. The MACD indicator also signals early bullish momentum, with an imminent MACD line crossover. If buyers maintain pressure above the VWAP at $1,804, Ethereum could confirm the wedge breakout and accelerate higher.
Ask Aime: What will happen to Ethereum's price after the recent tariff imposition by China?
However, rejection at the $1,900 level could invalidate the bullish outlook, exposing Ethereum to support at $1,600. A breakdown below this level might send prices toward $1,400, aligning with historical support zones. Ethereum's next move will depend on Bitcoin's strength and broader macroeconomic trends. If Ethereum breaks out, it could mirror past parabolic rallies, but failure to breach resistance may lead to deeper corrections before a true recovery. Traders should monitor volume and momentum for confirmation.
