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Ethereum Surges 10% After Trump's Tariff Pause, Eyes 20% Jump

Coin WorldWednesday, Apr 16, 2025 6:06 am ET

1min read

Ethereum (ETH) has shown resilience by holding onto a crucial support level following a recent correction. The cryptocurrency's recovery from historical demand zones has sparked optimism among analysts, who suggest that a significant breakout could be on the horizon.

Ethereum has managed to reclaim the $1,600 level after briefly dropping below the $1,400 support. This drop was the first time since 2023 that the cryptocurrency fell below this level, reaching a two-year low during last week’s market correction. The correction was influenced by the trade tariff war initiated by US President Donald Trump. Ethereum touched $1,385 last Wednesday, retesting the 2018 all-time high levels before recovering. Following Trump’s announcement of a 90-day tariff pause, Ethereum surged over 10% from $1,480 to $1,600, briefly nearing the $1,700 resistance. However, its price retraced to the $1,400-$1,500 support zone on Thursday due to market volatility.

Over the weekend, Ethereum recovered and hovered between the $1,580-$1,680 price range for four days. The cryptocurrency has reclaimed the $1,600 support in the past 24 hours, fueling bullish sentiment among market watchers. Analyst Ted Pillows noted that Ethereum might be nearing a breakout from its short-term downtrend line. He suggested that investors could expect the cryptocurrency to hold the $1,550-$1,600 level as global markets gain strength. Holding this range could propel Ethereum’s price toward the one-month downtrend line. A breakout and confirmation of this resistance, at around $1,670, could set the base for a 20% jump toward the $2,000 resistance level.

Merlijn The Trader suggested that Ethereum is gearing up for a breakout. He pointed out the cryptocurrency’s two-month descending channel, which could be “history” if volume surges. As Ethereum nears the channel’s upper boundary, a surge in volume could push the price above the $1,690 mark, targeting $2,700. The analyst also underscored that Ethereum’s double top formation was completed after “smashing” the $1,432 target, signaling that it “survived the storm.” This pattern developed within its $2,196-$3,904 Macro Range, following its March close below the $2,100 support. After recovering from the recent lows, the analyst predicted that “Now comes the face-melting rally no one expects. $4,000 is only the beginning.”

Rekt Capital highlighted that Ethereum’s Dominance has almost equaled old All-Time Lows. Since June 2023, Ethereum’s Dominance has dropped from 20% to 8%, historically a reversal area for the cryptocurrency. Generally, Ethereum Dominance needs to hold this green area for a chance at reversal. Increasing ETH Dominance would be highly beneficial for Altcoin valuations over time. When the ETH Dominance hit the $7.5%-8.25% range, it reversed “to become more market-dominant,” which could signal a reversal for Ethereum.

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