Ethereum News Today: Ethereum Falls Below $3,700 as Trump Tariffs and Fed Hike Pressures Mount

Ethereum (ETH) price dipped below $3,700 as of Friday, continuing a nearly 7% weekly decline driven by U.S. President Donald Trump’s newly imposed reciprocal tariffs and the Federal Reserve’s (Fed) ongoing hawkish stance. The Fed maintained interest rates at 4.25%-4.50% for the fifth consecutive meeting, with Chair Jerome Powell indicating no immediate decision on rate cuts, causing further risk-off sentiment. The likelihood of a September rate cut dropped from 60% to 43% following the press conference, according to the CME Fedwatch Tool [1].

Trump’s trade policies added to the market’s unease, with tariffs on imports from Brazil, Switzerland, South Africa, and several Southeast Asian countries set to take effect on August 1 [2]. While some trade negotiations with the European Union and Japan brought optimism earlier in the week, uncertainty remains over pending deals with Canada, Australia, and India. The market’s response has been subdued, with S&P 500 futures falling slightly, largely attributed to Amazon’s underwhelming earnings results [3].

Despite the near-term bearish pressure on ETH, whale wallets and institutional investors have shown continued confidence. Lookonchain data revealed two new wallets accumulating 68,297 ETH, worth approximately $252 million, on Friday alone. Since July 9, 12 new wallets have added 790,449 ETH, totaling $2.92 billion in inflows [4]. Institutional demand remains robust, with U.S. spot Ethereum ETFs recording a weekly inflow of 306.58 million ETH as of Thursday. SoSoValue data noted that July’s ETF inflows hit $5.43 billion—the highest since the funds launched [5].

Ethereum reached a year-to-date high of $3,941 on July 28, delivering a 48.80% monthly return. Historical data suggests that ETH has typically seen an average gain of 5.47% in August, offering cautious optimism if trade tensions ease and regulatory clarity persists [6]. However, the current technical outlook is bearish. The RSI has fallen below its overbought level, and a bearish MACD crossover indicates weakening bullish momentum. If the downward trend continues, ETH could test support at $3,500 before potentially finding a bottom. A recovery above $3,730 would be needed to challenge the $4,000 level [7].

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[1] https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-forecast-eth-dips-below-3-700-as-trumps-new-tariffs-raise-market-concerns-202508011300