Ethereum Price Prediction: Will ETH Drop Amid Trump Trade Wars?

Will Ethereum Price Crash Ahead of Trump Trade Wars

Ethereum price has been facing resistance at the $4,000 level, marked by four consecutive rejections at this level. As investors keep watching the progress of ETH, the global trade landscape, especially the current tariff policy of the U.S President Donald Trump, is adding to the market uncertainty.

With the Trump trades war escalating, fears about the stability of the world economy may create more volatility in the altcoin price.

Ethereum Price Faces Resistance Amid Global Trade Tensions

ETH price has in the recent past hit a resistance level of $4,000, repeatedly failing to breach it on four occasions. This rejection at this threshold showed that selling pressure was heavy and it could not support extended surge.

With ETH yet to overcome this resistance, trades are turning their eyes towards the larger macro-picture, especially how trades tensions will continue to play out. Tariffs imposed by the U.S. have reached the highest rates in the past century, which makes some worry that relations between countries in terms of trades can only get worse.

Such uncertainty will undoubtedly affect the cryptocurrency market and even the performance of ETH price.

Market participants are already sceptical because in the four rejections, ETH has not shown substantial bullish pressure. There have been sharp pullbacks in price, with the altcoin falling to lows of $3,400.

ETHUSD 1-Week Chart | Source: X

The ongoing trade war may exacerbate this, as tariffs and trade disputes typically lead to higher risks in global markets. These developments create a volatile environment that could weigh heavily on ETH price short-term prospects.

U.S. Trade War and Its Impact on Global Markets

The ongoing trade dispute has been escalated lately by the tariff regime recently instated by President Trump involving reciprocal tariffs on many foreign nations. Such tariffs, imposed on trade partners like Switzerland, Japan, and Taiwan, will make imports to the U.S. costlier, which is likely to increase the current tension across the globe.

Major markets have already experienced uncertainties due to the announcement and analysts fear that these actions will lead to even slower economic growth.

This trade war is particularly relevant to the cryptocurrency market since digital currencies such as ETH are common alternative investments during periods of economic turbulence. 

In case the situation in the global economy gets worse, it may cause investor sentiment to be pulled back in riskier assets, such as cryptocurrencies.

ETH, having undergone an upward struggle with the $4,000 resistance, is likely to have its price further influenced downwards with the uncertainties.

Ethereum Price Outlook in a Volatile Market

With Ethereum struggling at the $4,000 resistance, the immediate outlook for ETH depends on how well it can sustain its position above $3,400. Further refusal at the $4,000 level may indicate a possible decline, and the price may fall below the key support level of $3,400.

Nevertheless, amid the uncertainties being created by the trade wars, analysts have pointed out that the price of Altcoin is at a breakout level. The analysts showed a symmetrical triangle chart, which indicated positive movement since Altcoin price was consolidating.

ETHUSD 4Hr Chart | Source: X

Moreover, a bullish crossover on the stochastic indicator boosted the prospects of a price rally, and Altcoin was expected to move above the resistance at the $3,700 mark.

Contrary to previous occurrences, when cryptocurrencies recorded positive price trends, the recent Trump trades wars might erode investors' appetite for risk assets.

Is Ethereum Price Positioned for a Breakout?

For Ethereum to break free from the resistance, it must reclaim this level and sustain its position above it. A close above $4,000 would turn the market momentum and indicate a possible Altcoin price bullish momentum, which could result in a new all-time high.

However, it will be harder to get Ethereum to cross this price threshold given the condition of the global economy and the increasing pressure posed by the trades tensions.