Wednesday could be a pivotal day for ether (ETH) market as Trump is expected to announce sweeping reciprocal tariffs

Wednesday could be a pivotal day for financial markets, including cryptocurrencies, as President Donald Trump is expected to announce sweeping reciprocal tariffs

President Donald Trump is set to announce sweeping reciprocal tariffs on Wednesday, which could have a pivotal impact on financial markets, including cryptocurrencies.

The president’s announcement follows his recent complaints about the U.S. being "rapidly liberated" by its trading partners. In particular, Trump has focused on China, which he claims is engaging in unfair trade practices.

However, recent signs of downtrend exhaustion in the ether (ETH) market suggest that the crypto market may be less sensitive to the tariffs than some anticipate.

Indeed, ETH may even begin to outlag bitcoin (BTC) if the tariffs announced on Wednesday are more measured than expected.

Seller fatigue at March lows, potential double bottom

Ether has been lagging behind bitcoin by a large margin throughout the two-year bull crypto market cycle. But, with the impending threat of Trump tariffs and broader market risk aversion, even BTC sustained a 50% loss from December highs.

As a result of the selling pressure, bitcoin slid to lows of $3,800 last week, dragging ether down with it. However, the bears failed to break the 16-month low of $1,755 hit on March 11.

This resilience is the first sign of seller fatigue or, more precisely, downtrend exhaustion.

From the lows of $1,755, prices recovered to $1,880 by Monday, testing the neckline of a potential double bottom. A breakout above the $2,104 resistance would confirm the bullish formation, paving the way for a rally towards $2,400. That level is the next resistance according to the measured move method from the 2018 lows.

The double bottom is a chart pattern that occurs when an asset trades to the same low on two separate occasions before reversing higher. It is a bullish pattern that signals that the sellers are becoming exhausted and that the buyers are returning.

In the case of ether, the first low was hit on March 11, and the second low was hit last week. The neckline of the double bottom is at $2,104, and the measured move from the 2018 lows places the next resistance at $2,400.

A breakout above the $2,104 resistance would confirm the bullish double bottom pattern, which could open the door for a rally towards $2,400. However, a breakdown below the $1,755 support could negate the bullish signals and lead to further weakness in ether.