Ethereum (ETH) faced a modest dip on Friday, briefly slipping below the $2,400 mark after US President Donald Trump abruptly ended trade negotiations with Canada. While the crypto market showed some volatility, traditional equities like the S&P 500 and Nasdaq continued to post record highs, highlighting a divergence in investor sentiment between digital assets and stocks.
Market Snapshot: ETH Reacts to Geopolitical Headlines
The latest market move came as President Trump announced the termination of trade talks, citing Canada’s new Digital Services Tax on US tech firms as a key trigger. This policy shift, described as a “direct and blatant attack” by Trump, has injected fresh uncertainty into global markets, with Ethereum’s price reflecting the cautious mood.
• Current ETH Price: $2,410
• Recent Low: Briefly under $2,400
• 24h Futures Liquidations: $50,31 million (longs: $35,38M, shorts: $14,93M)
Sentiment and Technicals: Weakness Persists
Ethereum’s funding rates have turned negative several times over the past week, signaling growing indecision among traders. Weighted sentiment has also dropped to levels last seen during earlier tariff disputes, suggesting retail optimism is fading. This cautious stance is reinforced by macroeconomic shocks and ongoing global policy shifts.
On the technical front, ETH is at a critical juncture. The 50-day Simple Moving Average (SMA) is close to crossing below the 100-day SMA—a pattern known as a “death cross.” Historically, this has signaled significant downside risk: the last death cross in late 2022 preceded a 35% drop in ETH’s price. If this pattern repeats, ETH could test support near $1,700.
However, not all signals are bearish. The Relative Strength Index (RSI) is hovering near neutral, and the Stochastic Oscillator is testing overbought territory. A decisive move above the $2,850 resistance could invalidate the bearish outlook and open the door for a rally toward $3,400.
Broader Context: Crypto vs. Equities
While Ethereum and the broader crypto market remain range-bound, equities have shown resilience. The S&P 500 and Nasdaq hit new highs, buoyed by positive developments in US-China trade relations. This contrast underscores the unique pressures facing digital assets, which are more sensitive to regulatory and macroeconomic shocks.
Looking Ahead: Key Levels to Watch
• Bearish Scenario: If the death cross is confirmed, ETH could fall as much as 35%, targeting the $1,700 support zone.
• Bullish Scenario: A breakout above $2,850 would shift momentum, with potential upside toward $3,400.
For investors, the coming days will be crucial as Ethereum navigates both technical and macroeconomic headwinds. Stay tuned for further updates as the market digests these developments.
