Bitcoin, Ethereum, and XRP DIP Amid EU–US Trade War Fears and Trump Tariff Announcements

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) prices dipped as renewed trade war fears between the European Union and the United States emerged. The EU halted a pending trade deal with the U.S. following the Trump administration's proposed 10% tariffs on imports from seven countries, with plans to increase to 25% if a resolution isn't reached by June according to reports. These developments dampened risk appetite and pressured global assets, including digital currencies as market analysis shows.

BTC dropped below $93,000, while ETH and XRP followed suit, approaching key support levels. A close below the 50-day Exponential Moving Average (EMA) at $92,396 for Bitcoin could signal a deeper correction. The Relative Strength Index (RSI) has dropped to 52, indicating weakening bullish momentum according to technical indicators.

Ethereum faced rejection from the 200-day EMA at $3,336 and has since tested the 50-day EMA at $3,166. ETH's RSI and MACD indicators also show a decline in upward momentum, suggesting further downside risk unless buyers step in according to technical analysis.

Why Did This Happen?

The renewed EU–US trade tensions stem from the Trump administration's aggressive push for the U.S. to acquire Greenland. The U.S. announced tariffs on imports from Germany, France, the UK, and others, escalating fears of a prolonged trade conflict. These developments triggered a risk-off sentiment across global markets, including cryptocurrencies as market data indicates.

Ethereum's price action reflects a broader pattern of market uncertainty. Institutional investors are watching for a decisive breakout above $3,400, which could signal renewed bullish momentum. However, without strong volume or on-chain demand, analysts remain cautious according to market analysis.

How Did Markets React?

Bitcoin and Ethereum are both consolidating near key EMAs, with technical indicators showing weakening upward momentum. XRP, which dropped nearly 5% over the weekend, is also testing critical support levels. The RSI on the daily chart for XRP is at 42, below the neutral level of 50, indicating bearish momentum according to technical data.

Cryptocurrency markets, unlike traditional equities, operate around the clock, making them sensitive to overnight geopolitical developments. Despite the volatility, Bitcoin has shown resilience compared to previous trade wars. However, analysts remain wary of a potential breakdown below $80,000, which could trigger a deeper correction according to market analysis.

ETF inflows for XRP have exceeded $1.5 billion, indicating growing institutional interest despite the price decline. The Bitwise XRP ETF, for example, saw a $4.51 million inflow on a single day as investors positioned for potential long-term gains according to financial reports.

What Are Analysts Watching Next?

Analysts are closely monitoring whether Bitcoin can hold above $92,396. A firm close below that level could extend the correction toward $90,000. For Ethereum, a break above $3,400 with strong volume could open the path toward $3,800–$4,000 according to technical analysis.

On the bearish side, XRP faces a key support at $1.96. A close below that level could lead to a further decline toward $1.77. The MACD for XRP showed a bearish crossover earlier in the week, adding to the negative outlook according to technical indicators.

Institutional adoption of XRP through ETFs and futures products is growing, with multiple issuers launching spot ETFs on major exchanges. This trend suggests that XRP may continue to attract regulated capital, even during periods of price weakness according to market analysis.

The broader macroeconomic picture remains uncertain, with high tariffs potentially leading to inflationary pressures and currency devaluation. Bitcoin's role as a hedge against fiat debasement is being debated, with some analysts suggesting that long-term institutional demand could increase if the U.S. dollar weakens further according to market analysis.

Overall, investors are advised to remain cautious as trade tensions and regulatory uncertainty persist. While ETF inflows and on-chain metrics suggest growing institutional interest, the short-term outlook for Bitcoin, Ethereum, and XRP remains mixed, with key support and resistance levels acting as critical decision points for market direction.