Ethereum Surges 21% to $1,600 on Tariff Pause, Faces Resistance

Ethereum (ETH) experienced a notable short-term surge, briefly surpassing the $1,600 mark before retreating. This movement followed a period of macroeconomic shifts, including a pause in tariffs by the U.S. President, which influenced broader market sentiment. The cryptocurrency's price rebounded by over 21% from a low of $1,380, leading the rally in the cryptocurrency market. However, despite this rebound, Ethereum's market trend remains cautious, with critical technical hurdles continuing to pressure the asset.

Ethereum is currently trading at $1,599.61, having failed to sustain above the $1,600 level. The recent price action indicates that while there has been a strong rebound from lower lows, ETH has not yet broken through major resistance zones. Technical charts reveal that Ethereum’s structure remains vulnerable, with lower highs dominating recent sessions. For ETH bulls to regain confidence, reclaiming the $1,600 level first and then targeting $1,800 would be crucial. This could signal a broader shift in the Ethereum market trend. However, caution dominates as the Ethereum price struggles to sustain upward momentum.

The recent price rebound offers some relief, but it is uncertain whether this marks the start of an actual recovery or just a temporary pause. Investors and ETH holders are closely monitoring whether the Ethereum price can maintain its momentum. Social sentiment reflects this uncertainty, with some ETH bulls remaining positive about further upside, while others prepare for potential new lows. Tariffs and slowing global growth continue to impact the Ethereum market trend.

The focus remains on critical support and resistance zones. A sustained move above $1,600 could fuel the ETH price rebound, with a break to $1,800 being a key point for ETH traders. Holding above $1,500 is now essential to prevent a continuation of the downtrend. However, a breakdown below $1,500 could lead to further declines to the $1,300–$1,200 zone, fueling fears among ETH bulls.

Increasing institutional interest, growing DeFi activity, and upcoming technological upgrades provide a long-term prospect for Ethereum. Nonetheless, short-term recovery largely depends on how the Ethereum price manages. The current macroeconomic environment and broader recovery could lift the Ethereum market trend back on track.

The ETH price rebound provides short-term optimism but leaves Ethereum at a critical point. Beyond immediate price action, investors are watching fundamental metrics like network activity and staking trends to monitor the movements of the Ethereum ecosystem. While technicals dominate now, long-term growth prospects still offer a strong case for those willing to overlook short-term volatility. The next few levels could be decisive in shaping Ethereum’s direction for the coming months.