Ethereum Surges 13.5% to $2,050 on Trump Trade Deal Announcement

Ethereum (ETH) has surged past the $2,000 mark for the first time since March, marking a significant milestone in its recent price recovery. This surge comes after a period of volatility, during which Ethereum hit a two-year low of $1,385 in the weeks following its loss of the $2,000 resistance level at the end of March.

The cryptocurrency has shown a steady climb, reclaiming crucial levels such as the $1,600-$1,750 zone over the past two weeks. Earlier this week, Ethereum reclaimed the $1,800 resistance, but concerns about its sideways price action and potential drops to lower support levels persisted among some investors.

However, Ethereum's price soared by 8.3% toward the $1,950 level following the announcement by US President Donald Trump of a “major trade deal” with a “big, and highly respected, country” to be revealed on May 8. This news, coupled with Trump’s subsequent $6 billion deal with the UK, pushed ETH past the $2,000 mark and near the $2,100 level.

Analyst Rekt Capital noted the “strong breakout so far,” highlighting that Ethereum held the bottom of its historical demand zone and rebounded around 14% to the top of the range. The analyst emphasized that for Ethereum to confirm a breakout toward the $2,200 area, it must turn the $1,930 level into support to avoid an upside wick and rejection.

Rekt Capital further detailed that Ethereum needs to stay above $1,930 to position itself for a revisit of the $2,200 area. The goal, according to the analyst, is for Ethereum to use the historical demand area to resynchronize with its $2,200-$3,900 macro range.

Meanwhile, Daan Crypto Trades observed that Ethereum is testing its range high against its BTC trading pair. The trader noted that while the move is small compared to what is needed for proper relief, it already has a market-wide impact on altcoins by moving approximately 7% against BTC. Despite the positive signs, Daan advised investors not to get overexcited until ETH/BTC breaks out and holds above the 0.0202 range high.

Daan also suggested that investors should be prepared for a significant price move, as this performance generally ends in a violent fashion with a big wick towards the upside before cooling off. Ali Martinez highlighted that the key supply barrier for Ethereum sits at around $2,380, where 12.72 million addresses bought 69.6 million ETH. According to the analyst, clearing this level could ignite a new bull rally.

As of the latest update, Ethereum is trading at $2,050, reflecting a 13.5% surge in the daily timeframe. This price movement indicates a strong recovery for Ethereum, which has been closely watched by analysts and investors alike. The cryptocurrency's ability to hold above the $1,930 level will be crucial in determining its next move, with potential targets set at $2,200 and beyond.