Ethereum Price Forecast: ETH stretches decline as Trump plans tariff on European Union

Ethereum price today: $2,320

• Ethereum took a 7% dive upon Trump's statement that the US would impose tariffs on imports from the European Union.
• The decline shows a rising correlation between cryptocurrencies and macroeconomic conditions.
• ETH could stretch its decline to $1,500 if the descending channel support fails.

Ethereum (ETH) extended its decline on Wednesday, down 7% in the past 24 hours following US President Donald Trump stating that he would slap a 25% tariff on imports from the European Union.

Ethereum falters before Trump's tariff threats

In the first cabinet meeting of his second term, Trump remarked that the US would impose a 25% tariff on imports from Europe.

"We have made a decision, we'll be announcing it very soon and it'll be 25% generally speaking, and that will be on cars and all other things," said Trump.

He also noted a potential delay in implementing the tariff on Canada and Mexico to April 2.

Following the statement, ETH stretched its decline to 7% in the past 24 hours and 15% in the weekly time frame.

The sustained price depreciation has caused a number of ETH investors to capitulate, aiming to cut losses with fears of further downturn.

The Network Realized Profit/Loss metric shows investors booked about $500 million in losses in the past three days.

ETH Network Realized Profit/Loss. Source: Santiment

Likewise, Ethereum exchange-traded funds (ETFs) recorded a fourth consecutive day of negative flows, with $50.1 million in net outflows on Tuesday, per Coinglass data.

A similar decline was evident across the crypto market, where Bitcoin (BTC), XRP and Solana (SOL) noted losses.

The sustained losses since Monday, when Trump first announced tariff resumption on Canada and Mexico, underscores ETH and, by extension, the crypto market's rising correlation to macroeconomic conditions and traditional stocks.

After Trump's statement, the S&P 500 shaved off $500 billion from its market capitalization.

Ethereum Price Forecast: ETH could decline to $1,500 if descending channel's support fails

Ethereum sustained $116.28 million in futures liquidations in the past 24 hours, per Coinglass data. The total amount of long and short liquidations accounted for $86.81 million and $29.47 million, respectively.

ETH saw a rejection near the $2,560 resistance following a bounce off the lower boundary of a descending channel on Tuesday.

ETH/USDT daily chart

The top altcoin is retesting the channel's support for the second consecutive day. If ETH sustains a firm close below the descending channel and fails to hold the $2,200 critical support, it could decline to $1,500.

However, the $2,300-$2,500 historical demand zone — where investors purchased over 62 million ETH — could help prevent such a decline.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are near their oversold regions, indicating dominant bearish momentum and a potential recovery.

A daily candlestick close above the $3,000 psychological level will invalidate the thesis.