Ethereum Price Today: $2,540
- Ethereum fell 3% after President Trump announced new tariffs on the EU and Apple.
- The bullish market structure is not yet broken, supported by strong buying pressure from US spot Ether ETFs and whales.
- ETH could record double-digit losses if it falls below the key level of $2,500.
Ethereum (ETH) is down 3% on Friday, joining the broader cryptocurrency market decline following President Trump’s latest tariff threats on the European Union (EU) and Apple. The leading altcoin risks extending its losses to double digits if it falls below the key level of $2,500.
Ethereum Risks Another Round of Decline if Tariff-Induced Selling Increases
Following President Trump’s new threats to impose a 50% tariff on the EU and a 25% tax on Apple phones produced abroad, the cryptocurrency market experienced a rapid correction. Ethereum fell from a weekly high above $2,700 to below $2,600 at the time of publication, as investors panicked following Trump’s announcement.
After a poor performance in the first quarter that saw ETH fall more than 50% following Trump’s reciprocal tariffs on international trading partners, the leading altcoin began a recovery in April. Against the backdrop of the US reaching agreements with trading partners and tariff fears subsiding, Ethereum rallied more than 70% from lows of $1,470 on April 7 to near $2,700 on Thursday.
However, with Trump reviving tariff threats, market sentiment shows signs of turning bearish heading into the weekend. Ethereum’s exchange reserves, which have been on a downward trend since April 24, saw a slight increase of 70K ETH on Friday, according to data from CryptoQuant.
However, the market has not yet turned bearish, as the recent price drop represents “a macro volatility shock, not a collapse of the cryptocurrency market structure,” analysts noted.
Meanwhile, Ethereum’s subsequent decline after crossing above $2,700 this week extended a trend of ETH experiencing increasing selling pressure whenever prices approach the key level of $2,800 in the past two weeks.
“There is a significant concentration of investor cost levels around the $2,800 level,” analysts at Glassnode wrote in a report on Tuesday. “This region is likely to attract increased selling pressure, as many investors who were previously at a loss may seek to reduce risk at or near their breakeven level, and withdraw some profits.”
Despite signs of risk reduction, intense buying pressure from whales and US spot Ether ETF investors could keep the leading altcoin afloat heading into the weekend.
US spot ETH ETFs recorded net inflows of $110.54 million on Thursday, their largest daily inflow since February 4, according to data from SoSoValue. The positive flows mark the fifth consecutive day of net inflows for the products. Additionally, ETH investors holding between 10K and 100K ETH increased their balance by 450K ETH in the last week, according to data from Santiment.
Ethereum Forecast: ETH Aims for Double-Digit Losses if it Falls Below the Key Level of $2,500
Ethereum saw $143 million in futures liquidations in the last 24 hours, according to data from Coinglass. The total amount of long and short positions liquidated is $103.6 million and $39.4 million, respectively.
After rising more than 3% on Thursday near the $2,750 resistance of an ascending triangle pattern, ETH saw a rejection. The leading altcoin fell 3% and is struggling to maintain the key level of $2,500 and the ascending trendline support of the triangle. The 50-period Simple Moving Average (SMA) also serves as dynamic support to the downside.
If ETH fails to maintain these support levels, it could extend its decline to the key range of $2,260 – $2,100 to record double-digit losses. To the upside, ETH must overcome resistance around $2,750 – $2,850 to resume an uptrend.
The Stochastic Oscillator (Stoch) has fallen from its overbought region, aligning with price corrections that often follow overbought conditions. On the other hand, the Moving Average Convergence/Divergence (MACD) indicator turned to a red histogram bar, signalling an increase in bearish momentum.
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