Ethereum Holds Near $1,829 Amid U.S. GDP Contraction of 0.3%

Ethereum (ETH/USD) is currently trading around $1,829, consolidating beneath a significant technical hurdle at the $1,871 resistance zone. This level has rejected price advances three times, forming a textbook “triple top” pattern that now acts as a psychological barrier for buyers. Despite this resistance, ETH remains supported by a rising trendline and the 50-period exponential moving average (EMA), currently holding around $1,821. This convergence of trendline support and the EMA creates a key decision zone for traders. If Ethereum clears $1,871 on strong volume, bullish momentum could drive the price toward $1,910 and even $1,950. For newer traders, it’s wise to wait for a confirmed breakout—chasing price action in tight ranges often leads to whipsaws.

While Ethereum holds steady, the U.S. economy is signaling potential trouble ahead. The Commerce Department reported that gross domestic product (GDP) contracted at a 0.3% annualized pace in Q1 2025. A surge in imports—up 41.3%, driven by a 50.9% spike in goods—was the primary driver behind the contraction. These were likely front-loaded purchases to avoid looming tariffs from President Trump’s escalating trade war. Notably, imports subtract from GDP calculations, so the headline number may exaggerate the weakness. Still, this marks the first quarterly contraction since early 2022. Wall Street had expected a 0.4% expansion, but the surprise trade-driven drag caused many economists to revise their forecasts lower just ahead of the release. This data complicates the Federal Reserve’s policy path. While soft growth could justify rate cuts, persistent inflation remains a constraint. Fed officials may need to balance recessionary signals against price stability mandates.

Despite the GDP setback, the U.S. labor market remains firm. The Labor Department reported 177,000 new jobs in April, beating expectations. The unemployment rate held at 4.2%, while average hourly earnings rose by six cents to $36.06—up 3.8% over the past year. Yet, other data paint a mixed picture. Challenger, Grey & Christmas reported over 105,000 job cuts in April, and ADP’s private payroll survey showed just 62,000 new jobs—its weakest print since July 2024. Experts warn that the disconnect between headline job growth and forward corporate earnings guidance suggests a potential slowdown in hiring ahead. With trade policy uncertain and corporate caution rising, market participants are hedging with digital assets like Ethereum. As centralized policy signals waver, decentralized assets are gaining traction among investors seeking alternative stores of value.

Ethereum’s price action and broader macro dynamics are converging at a crucial moment. As U.S. growth falters and traditional markets digest trade and labor shifts, digital assets like ETH are emerging as high-conviction bets. If ETH clears the $1,871 resistance, it may serve as a leading indicator of broader investor sentiment shifting toward crypto amid traditional market uncertainty.