Ethereum Price Prediction: Weekly Chart Signals Strong Resistance at $2,750

Ethereum (ETH) has gone down by nearly 2.6% in the past 7 days as tensions in the Middle East have spooked investors despite the latest cease-fire agreement between Iran and Israel.

The Federal Reserve cleared the air this week with respect to this year’s interest rate cuts as Chairman Jerome Powell confirmed that two cuts are still on the table.

However, too many potentially negative economic variables are floating around including stalled negotiations between China and the United States on tariffs.

Just minutes ago, President Donald Trump announced that the the U.S. will no longer negotiate with Canada on tariffs as this long-standing commercial ally decided to impose a digital services tax on American firms.

“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,” Trump commented in a Truth Social post.

If the U.S. decides to reimpose high tariffs on all Canadian imported goods as they did weeks ago when Trump initially announced his hostile trade measures, this could anticipate how determined the current administration is to respond swiftly to any signs of unfair treatment from other parties like China, Mexico, and the European Union.

Crypto prices could suffer if inflation spikes up in the U.S. as a result of these measures as the Federal Reserve could be forced to lower the number of rate cuts or completely scrap any plans to ease their monetary policy.

This would have a dramatic impact on financial assets, especially those perceived as high-risk like cryptos, as higher-for-longer rates have a negative impact on their valuation.

Positive Momentum Seems to Have Faded

Looking at Ethereum’s weekly chart, which is often used by investors and swing traders to predict the long-term price trend, the $2,500 – $2,900 area has favored sellers as the selling pressure at those levels has been quite high in the past 7 weeks.

This area is close to the 61.8% Fibonacci retracement level of the latest downtrend. This means that ETH has climbed near a discount area for bears and the selling pressure we are seeing favors a bearish outlook and the continuation of the downtrend that started back in December.

Negative market conditions could be the catalyst that the market needs for a retest of the lows we saw in April.

Momentarily, the price has found support at $2,100 and has bounced off this area during this week. However, weekends tend to be bearish for crypto so the market could take another try at that level if bearish momentum accelerates as a result of Trump’s decision to increase tariffs on Canadian goods shortly.

Can ETH Drop to $1,750?

Heading to the daily chart, we can further refine these areas of support and resistance to identify potential entries and exits for short and long positions for the next few days.

In this time frame, the 9-day and 21-day exponential moving averages (EMAs) have sent sell signals already as they crossed below the 200-day EMA.

This favors a retest of the $2,100 support in the near term and raises the odds of a bearish breakout. If that happens, ETH could drop to $1,750, which is the nearest area of liquidity in this higher time frame.

This implies a 25% downside risk from current levels, although this bearish outlook is still not confirmed. If the price dives below $2,100, retests that area from below, and rejects it, that would provide the required confirmation that ETH is heading to $1,750 in the next few days.