Ethereum Holds Strong at $2,500 Support After Trump’s Tariff Shock
The crypto market took a hit this week after former US President Donald Trump announced the reintroduction of reciprocal trade tariffs affecting several countries, including Indonesia. The tariff rate remains at 32%, sparking widespread concerns about global trade relations and investor sentiment.
The announcement saw Bitcoin (BTC) tumble sharply to around US$107,000 on Tuesday, 8 July. However, Ethereum (ETH) showed notable resilience, maintaining a narrow trading range between US$2,450 and US$2,575, a key support zone according to technical analysts.
Despite the broader market pressure, Ethereum’s price held firm above the lower end of the range. Analysts point out that this level has become a crucial foundation for ETH’s medium-term bullish structure, suggesting strong underlying market confidence.
Supporting this price stability is Ethereum’s surge in on-chain activity. Daily transactions have hit approximately 1.45 million, marking the highest level since the peak of the 2021 bull run. The uptick is largely attributed to renewed interest in Decentralised Finance (DeFi) platforms and the increasing participation of users across various Ethereum-based applications.
Crypto market analysts argue that such robust network usage is a key fundamental indicator for Ethereum’s value proposition. When combined with consistent trading volume and high transaction throughput, Ethereum may be laying the groundwork for a potential price breakout in the near term.
Technical indicators also highlight that a breakout above the US$2,700 resistance level could open the door for a push toward US$2,900. This would represent a significant gain for traders who have held through the recent consolidation phase.
However, analysts caution that geopolitical developments, including further tariff announcements or economic uncertainty from the US and its trading partners, could still influence short-term volatility in the crypto markets.
Still, Ethereum's strong fundamentals, including network utilisation, developer activity, and DeFi expansion, are reinforcing its reputation as the leading smart contract platform, especially in times of market turbulence.
As investors weigh macroeconomic factors against blockchain growth, Ethereum appears well-positioned to maintain its footing — and possibly lead the next leg of the market's recovery.
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