Ethereum Holds $2,900 Support as Trump Drops Tariff Threats at Davos
Ethereum (ETH) stabilized near the $2,900 support level after geopolitical risk eased at the World Economic Forum in Davos. President Donald Trump, who earlier threatened 10% tariffs on European countries over Greenland, shifted tone and announced a “framework of a future deal” with NATO Secretary General Mark Rutte. That pivot reduced immediate risk-off sentiment, helping crypto risk assets rebound — Bitcoin reclaimed roughly $90,000 and ETH steadied above $2,900. Technicals: ETH is testing a key horizontal support around $2,900; a daily close below could target $2,750, while resistance sits near $3,200. Momentum indicators (Stochastic RSI) are approaching oversold readings, suggesting short-term downward pressure may be waning. On-chain flows show continued whale accumulation — roughly $360 million of ETH was bought into support levels — while exchange and liquidity conditions remain a consideration during volatility. Market takeaway for traders: monitor a daily close relative to $2,900 for short-term risk management, watch $3,200 as the nearest resistance for potential breakouts, and consider liquidity and custody risks amid rapid news-driven moves. This article is informational and not financial advice.
Neutral
The news is neutral-to-mildly bullish for crypto market confidence but not decisively market-moving. Trump’s de-escalation at Davos removed an immediate catalyst for risk-off selling, allowing Bitcoin to reclaim ~$90,000 and enabling ETH to hold the critical $2,900 support. Technicals show stabilization: $2,900 is the key short-term floor with $3,200 as the nearest meaningful resistance; momentum indicators nearing oversold suggest limited near-term downside. Whale accumulation (~$360M ETH) is a bullish micro-signal indicating demand at current levels. However, lack of concrete deal details and the possibility of renewed headlines keep a volatility premium in place. For traders: expect short-term range-bound action between $2,900–$3,200 while news flow could trigger sharp intraday moves. A daily close below $2,900 would increase bearish risk toward $2,750; a sustained break above $3,200 would confirm a bullish resumption. Similar past events (geopolitical de-escalation followed by relief rallies) have produced short-lived rebounds that later depended on macro follow-through — so medium-term direction requires monitoring of macro headlines, on-chain flows, and liquidity. Maintain tight risk management and watch exchange liquidity during high-volatility windows.