Ethereum Price Prediction: Falling Wedge Pattern hints China tariff tailwinds could lift by ETH 250%

Ethereum price eyes a 250% rally as China’s 34% tariffs on U.S. goods fuel macro uncertainty, driving capital into crypto markets.

Why China’s 34% Tariffs on U.S. Goods Could Propel ETH 250%

Ethereum price traded near $1,820 on Friday, rising 1.6% in a muted performance compared to broader market leaders. While Bitcoin (BTC), Solana (SOL), and XRP all rallied over 3%, ETH lagged behind.

However, China’s 34% tariffs on U.S. imports introduce fresh volatility triggers that could accelerate ETH’s upside momentum.

BTC/Nasdaq Correlation Hits 37-Day Low Amid Trade War Tensions

Markets reacted sharply to China’s unexpected decision to impose 34% tariffs on a broad range of U.S. imports.

Equities dipped in early trading, but crypto assets remained largely resilient.

According to TradingView data, Bitcoin’s correlation with the Nasdaq 100 fell to 0.42, its lowest level since February 25.

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 Trump’s tariff rollout, ETH price could soon surpass the $1,900 resistance level and sustain a broader uptrend.

US Fed Rate Pause Could Boost Ethereum’s DeFi Ecosystem

Following the Federal Reserve’s 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, Ethereum’s 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 wedge’s 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.

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 Bitcoin’s 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.