Ethereum News Today: Ethereum Struggles at $3,690 Despite GENIUS Act and Trade Tensions

On July 19, US President Trump intensified trade tensions by insisting on maintaining import tariffs between 15%-20% on EU goods, particularly targeting the automotive sector. This development has sparked concerns over the stability of global trade dynamics, impacting investor sentiment across markets. Concurrently, the signing of the GENIUS Act marks a pivotal regulatory advancement for stablecoins, potentially solidifying the regulatory framework for US dollar-backed digital assets and offering a medium-term boost to the cryptocurrency sector.

Ethereum (ETH) has experienced notable volatility following its recent surge from $3,000 to a trading range of $3,570-$3,690. The asset has encountered significant resistance near key high-density liquidation zones, indicating persistent overhead pressure. Critical support levels are identified at $3,450 and $3,330; a breach below these could lead to further testing of the $3,200-$3,100 long liquidation zone, signaling potential downside risk in the short term.

Market analysts emphasize that while the GENIUS Act enhances market confidence, prevailing macroeconomic headwinds maintain a cautious environment for risk assets. Ethereum’s price action reflects this sentiment, as it consolidates within a tight range amid ongoing liquidation pressures. Investors should monitor support thresholds closely to gauge potential shifts in market momentum.

Ethereum (ETH) has been facing challenges in surpassing its overhead resistance levels, despite the recent passage of the GENIUS Act and escalating trade tensions between the US and the EU. The GENIUS Act, which aims to establish a regulatory framework for stablecoins, was narrowly passed by the House, with a vote of 215 to 211. This legislative development was seen as a potential boost for the cryptocurrency market, as it provides clarity and legitimacy to stablecoins, which are often used in conjunction with other cryptocurrencies like ETH. However, the positive sentiment generated by the GENIUS Act has not been enough to propel ETH above its resistance levels.

The trade tensions between the US and the EU have added another layer of complexity to the situation. The ongoing negotiations and disagreements between the two economic powerhouses have created uncertainty in global markets, which can have a ripple effect on the cryptocurrency market. The US has been accused of overcapacity in certain industries, leading to a flood of cheap goods in foreign markets, particularly in Europe. This has raised geopolitical tensions and created an environment of uncertainty, which can be detrimental to the performance of risk assets like ETH.

Despite these challenges, ETH has shown signs of bullish momentum in the past. The cryptocurrency recently broke above the 50-day Exponential Moving Average (EMA50), which is often seen as a bullish indicator. This breakout was accompanied by a 9% price increase in the last 24 hours, bringing ETH close to its resistance levels. However, the cryptocurrency has struggled to maintain this momentum and has since retreated from its highs.

The performance of ETH relative to Bitcoin (BTC) has also been a point of interest. The ETH/BTC pair recently broke key resistance at 0.026, indicating that ETH is outperforming BTC in the short term. This could be a sign of renewed bullish momentum for ETH, as it suggests that investors are rotating out of BTC and into ETH. However, the overall market sentiment remains cautious, and it is unclear whether this trend will continue.

In conclusion, ETH is currently facing challenges in breaking above its overhead resistance levels, despite the recent passage of the GENIUS Act and escalating trade tensions between the US and the EU. The cryptocurrency has shown signs of bullish momentum in the past, but the overall market sentiment remains cautious. Investors will be closely watching ETH's performance in the coming days and weeks, as it navigates these challenges and seeks to establish a new bullish trend.