Is Ethereum Giving a Bullish Signal While Markets Await U.S. Tariffs? Here are the Details.

Ethereum (ETH), as financial markets prepare for a major tariff announcement by former US President Donald Trump, are showing potential signs of a reversal in trend.

Market Signals Indicate That the Downtrend for ETH Has Exhausted

A disruption may occur in the crypto markets alongside the "Salvation Day" tariffs expected to be announced today, aimed at combating unfair trade practices, which could potentially push ETH into a leadership role.

Ethereum has significantly underperformed Bitcoin during the ongoing bull run (BTC), but technical indicators suggest this could change.

• Seller Fatigue at the Lowest Levels of March: ETH tested the lowest level in 16 months at $1,755 on March 11, but failed to drop further, signaling that selling pressure may be decreasing. Since then, the price has risen to $1,880, forming a potential double bottom formation, with key resistance at $2,104. If broken, ETH could rise towards $2,400 according to the measured movement method.
• Bull Divergence in Momentum: The difference between ETH's price and its 50-day simple moving average (SMA) showed a higher low even if ETH revisits previous low levels. This divergence indicates that downward momentum is weakening as prices decline and supports a potential reversal.
• Breakout Chart is Turning Bullish: The three-line breakout chart, which helps identify trend reversals, has turned positive following a long bearish trend where ETH fell below $2,000. The previous bullish signal at the beginning of March resulted in a bear trap, while this time the reversal is supported by multiple signs of seller exhaustion.

Will ETH Elevate the Crypto Market?

If Trump's reciprocal tariffs are less severe than expected, risk appetite may return, allowing ETH to gain momentum and potentially outpace BTC in the short term. However, if trade tensions escalate, broader market volatility could invalidate these bullish signals and lead to further declines.

Currently, investors are watching $2,104 as a critical breakout level that could pave the way for ETH's next rally.