Ethereum price intraday uptrend interrupted as tariff news triggers sharp reversal
Ethereum drops after Trump tariff news, faces resistance
Ethereum price rode a bullish wave earlier this week, reaching a five-day high of $1,955 after a solid 8% climb from $1,800.
However, the price faced significant resistance at the 100 EMA on the 4-hour chart, where it quickly reversed after U.S. President Donald Trump’s tariff announcement. This sharp reversal wiped out Ethereum’s earlier gains, causing a dip to $1,782, and reversed the 4hr RSI into bearish territory below the 40 level.
Ethereum’s market sentiment has also been influenced by ongoing discussions about Layer 2 (L2) solutions, particularly regarding potential tariff proposals on L2 networks. Ye Zhang, co-founder of the Layer 2 platform Scroll, criticized the idea of imposing fees on Ethereum Layer 2 solutions. Zhang argued that such a move would sacrifice long-term scalability and growth for short-term revenue, a stance he believes is more fitting for centralized systems rather than Ethereum's decentralized ecosystem. This development adds an interesting layer to Ethereum’s ongoing evolution, as debates over scalability and fees continue to shape its future.
Bearish RSI signals caution as Ethereum struggles with $1,865 resistance
ETH price dynamics (March - April 2025). Source: Tradingview
On Thursday, April 3rd, the altcoin showed signs of recovery, rising 2.8% during the Asian session and currently trades at around $1,825. While this rebound brings a sense of optimism, key levels of resistance and support will determine Ethereum’s near-term outlook.
In the immediate term, the price faces resistance around the $1,865 mark, which could prove challenging if upward momentum stalls. On the downside, the next critical support level sits at $1,755, a level that cushioned Ethereum's decline in March. If the downward pressure continues, testing this support could become inevitable.
As the price continues to fluctuate within these levels, Ethereum’s next moves will depend on whether the current recovery can hold above the near term support zone and if the broader market sentiment aligns with the optimism seen in recent price action.
Ethereum's price weakened due to a sharp decline in revenue from its layer-2 scaling chains. Technically, Ethereum faced pressure at the critical support level around $1,860.
