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Heading to the daily chart, we can see how ETH managed to stay above a key support at $1,370 and bounced before touching it after Trump paused tariffs.
Momentum indicators have been improving slightly as two bullish divergences popped up in the Relative Strength Index (RSI) before last Friday’s announcement.
However, this tariff-led drop messed up with these bullish signals and now the market lingers on how Trump will deal with China’s reluctance to negotiate.
These are heavily politicized markets where normal structures and trading signals will probably work less effectively than usual and win rates may drop from regular levels.
At this point, in three out of three of the past instances in which Ethereum’s RSI has stepped out of deep oversold levels, it has made a strong comeback. Will history repeat?
The MACD’s histogram shows that negative momentum has decelerated and this support bounce can be considered a double bottom.
Most indicators favor a bullish short-term outlook for the next few days unless President Trump decides to make another unexpected move.
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