Falling Wedges Pattern hints China tariff tailwinds could lift by ETH 250%

Historically, such divergence signals capital rotation. When equities experience trade-related instability, investors often seek alternative hedges, initially favouring Bitcoin.

If momentum continues, ETH price typically follows with steeper gains.

Reallocation Accelerates as Macro Risks Intensify

The current geopolitical backdrop mirrors 2019, when market turbulence from COVID-19 lockdowns led to increased capital inflows into crypto.

With global retaliation measures now escalating following Trumps tariff rollout, ETH price could soon surpass the $1,900 resistance level and sustain a broader uptrend.

US Fed Rate Pause Could Boost Ethereums DeFi Ecosystem

Following the Federal Reserves latest policy meeting, another rate pause now seems likely. If traditional savings and treasury yields remain low, investors may shift capital into DeFi for higher returns.

As the leading smart contract platform, Ethereums DeFi sector could see rising demand, increasing ETH accumulation.

If additional retaliatory trade measures emerge, alternative assets like ETH may gain further traction.

ETH Price Forecast: Falling Wedge Pattern Hints at a 250% Rally

Ethereum price is forming a falling wedge, a historically bullish pattern suggesting a potential 250% breakout toward $3,200. ETH is testing the wedges upper boundary near $1,900, with confirmation requiring a sustained close above this level.

The MACD indicator signals early bullish momentum, with an imminent MACD line crossover. If buyers sustain pressure above VWAP at $1,804, ETH could confirm the wedge breakout and accelerate higher.

ETH Price Forecast

However, rejection at $1,900 could invalidate the bullish outlook, exposing ETH to $1,600 support. A breakdown below this level might send prices toward $1,400, aligning with historical support zones.

Ethereum next move depends on Bitcoins strength and macroeconomic trends. If ETH breaks out, it could mirror past parabolic rallies, but failure to breach resistance may lead to deeper corrections before a true recovery. Traders should monitor volume and momentum for confirmation.

Frequently Asked Questions (FAQs)

China‘s tariffs introduce macroeconomic volatility, potentially driving investors toward crypto as a hedge, which could boost Ethereum’s price.

Ethereum is forming a falling wedge, a historically bullish pattern that could push ETH toward $3,200 if confirmed above $1,900.

Lower traditional yields could drive capital into Ethereums DeFi ecosystem, increasing demand for ETH as investors seek higher returns.