Key Insights:

• President Trump is expected to introduce reciprocal tariffs intended to ’liberate’ the U.S. from perceived unfair trade practices by other nations.
• Technical indicators for Ether (ETH) show potential signs of seller exhaustion.

Overview:

Wednesday may mark a significant turning point for cryptocurrency markets as President Donald Trump prepares to unveil substantial reciprocal tariffs targeting international trade practices. This anticipated announcement is expected to heavily influence financial markets, including cryptocurrencies.

As we await this crucial news, Ether’s market seems to be indicating signs of a potential turnaround. For an extended period, Ether had remained significantly behind Bitcoin (BTC) during a two-year bullish trend. However, should these tariffs prove more tempered than expected, Ether might take the lead.

Signs of Seller Fatigue at March Lows:

After experiencing a decline along with Bitcoin last week, Ether’s price failed to break below the 16-month low of $1,755 from March 11. This is seen as the first hint of seller fatigue. Following this, there has been a bounce back to approximately $1,880, hinting at a double bottom formation, with resistance existing at around $2,104. A movement above this level could confirm a bullish breakout, potentially propelling the price to $2,400 as the next target.

Bullish Divergence:

While the price tested its March low last week, the momentum histogram did not mirror this drop and instead indicated a higher low, revealing weakening downward momentum.

Line Break Chart Turns Bullish:

Following a lengthy downtrend that saw prices drop to $2,000, recent charts signal a bullish flip, suggesting a shift in market sentiment towards optimism. However, broader macroeconomic factors, particularly potential risk aversion stemming from the forthcoming tariffs, could also impact these bullish signals.