Ethereum Price Today: $2,410
- Ethereum briefly dipped below $2,400 following President Trump’s termination of trade talks with Canada.
- The dip coincides with weakening Ethereum funding rates and weighted sentiment.
- ETH could potentially fall by 35% if a death cross signal between the 50-day and 100-day SMAs is validated.
Ethereum (ETH) experienced a 1% decline on Friday, briefly falling below the $2,400 mark after former U.S. President Donald Trump announced the end of trade discussions with Canada.
Ethereum Shows Weakness Amid Trump’s Trade Talk Cancellation with Canada
While Ethereum and the broader cryptocurrency market have largely remained range-bound, stocks briefly surged on Friday, with the S&P 500 and Nasdaq Composite reaching all-time highs.
The initial stock market surge followed confirmation from Commerce Secretary Howard Lutnick that the U.S. and China had finalized a trade agreement. However, both indices pared those gains after Trump’s announcement regarding the termination of trade talks with Canada.
Trump stated on Truth Social that Canada has charged U.S. farmers tariffs of up to 400% on dairy products for years and announced a digital services tax on U.S. tech companies. He added that the U.S. would be terminating all trade discussions with Canada, effective immediately, and would inform Canada of the tariff they would need to pay to do business with the United States within the next seven days.
Following the announcement, Ethereum experienced another modest decline, briefly dropping 1% below $2,400. Its weighted sentiment plummeted to levels not seen since the beginning of Trump’s tariff rhetoric in early March. This suggests that retail optimism has decreased compared to its earlier rise in the month, despite the ceasefire between Israel and Iran.
Uncertainty among investors is also evident in ETH funding rates, which have shown negative signals on several occasions in the past week. This exemplifies the indecision observed in ETH’s price movement amid a slight recovery earlier in the week.
The weak sentiment may be attributed to investors maintaining a cautious approach, especially with occasional macroeconomic shocks that have continued to disrupt market conditions in recent weeks.
Ethereum Price Forecast: ETH Risks a 35% Drop if Death Cross Signal Validates
Ethereum experienced $50.31 million in futures liquidations in the last 24 hours, with long and short liquidations accounting for $35.38 million and $14.93 million, respectively, according to data.
In an attempt to recover from its sharp drop to $2,110 last week, ETH has risen 8.5% so far this week, returning to its familiar range of $2,300 to $2,800, where it has largely traded since its surge in early May.
On the weekly chart, the 50-period Simple Moving Average (SMA) is on the verge of crossing below the 100-period SMA, signaling a potential death cross. The last time this occurred, between October and early November 2022, ETH plummeted 35%, from $1,680 to $1,080. Conversely, when the 50-period SMA crossed above the 100-period SMA in January 2024, ETH rose by over 90%.
If these SMAs hold similar weight in current market conditions, a death cross could push ETH below key support levels, potentially reaching $1,700.
The Relative Strength Index (RSI) is testing its neutral level, while the Stochastic Oscillator (Stoch) is testing its overbought region line. Sustained rejections in both could strengthen bearish momentum, but successful crosses will accelerate bullish pressure.
A break above the key resistance of $2,850 would invalidate the bearish thesis and potentially send ETH towards $3,400.
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