Ethereum recovers from new two-year low of $1,385 amid tariff-induced sell-off
Ethereum rebounds 7% after hitting a two-year low at $1,385.
Ethereum price movement has witnessed significant swings this week, hitting a fresh two-year low of $1,385 during the Asian session on April 9.
However, a swift recovery followed, pushing Ethereum up by 7% to $1,485 during the European session. Despite this, Ethereum has still been down 5.8% for the week, continuing its struggles in a broader market sell-off.
Ethereum’s current decline is linked to broader market dynamics, particularly the global market sell-off triggered by the Trump administration’s sweeping tariffs. These macroeconomic factors have contributed to Ethereum's struggles as they have weighed on the broader risk asset market.
ETH price dynamics (Jan - April 2025). Source: Tradingview
Additionally, on-chain data reveals that an Ethereum whale who held 10,000 ETH for over 900 days recently sold their entire position. The whale missed out on a peak profit of $27.6 million when Ethereum hit over $4,000, but exited at a $2.75 million profit when Ethereum was around $1,578. This on-chain move highlights the difficulty investors face in a volatile market, with large holders choosing to liquidate at a profit despite missing the higher gains.
Ethereum short-term outlook hinges on $1,525 resistance and oversold RSI
The recent price action on the hourly chart highlights the 50 EMA, which has acted as resistance over the past two days and has continued to decline and is now near $1,525. This presents a crucial resistance level for any potential recovery. The daily RSI also remains in oversold territory, hinting at the possibility of further price recovery in the short term. However, whether Ethereum can push past the $1,525 resistance will depend on how the market responds to these levels.
Looking forward, Ethereum’s price action will be heavily influenced by resistance around the $1,525 level. If Ethereum can break through this key resistance and maintain upward momentum, it could signal a broader recovery. However, ongoing macroeconomic pressures and the market sentiment driven by whale activity remain critical bearish factors.
Trump’s tariffs caused a 25.9% crypto market drop, wiping out $1 trillion, per Binance Research. Memecoins fell over 50%, with Bitcoin down 19.1% and Ethereum 40%.
