Ethereum and the broader cryptocurrency market have fallen over the past 24 hours as escalating geopolitical tensions between the US and the European Union have fueled risk aversion among investors.
Meanwhile, traditional safe-haven assets rose sharply, with gold rising to new record highs and silver also hitting new highs amid the flight to quality following President Trump’s renewed tariff threats against several European countries over the Greenland dispute.
Find gold rose 1.1% to around $4,725 an ounce from early trading on Jan. 20, approaching an all-time high near $4,795 reached late last year, according to market data.
The metal has extended its relentless bull run into 2026, buoyed by safe-haven demand as investors brace for potential transatlantic trade disruptions.
Silver prices also rose almost 1% to reach a new high of $95.3/oz.
The ETH price was trading at $3,095 at 4:29 a.m. EST, after dropping 3.6% over the past day, while the crypto market also fell more than 2% to a market cap of $3.15 trillion, according to Coingecko facts.
Crypto Market Rattled as Trump Tariffs Raised Dent Risks
Over the weekend, Trump threatened that he would impose import tariffs of up to 25% on several major European countries, including Denmark, France and the US, until they reached a deal to hand Greenland to Washington.
The US president’s demands were widely rejected by European leaders, with France seen preparing economic retaliation against the United States.
The exchange between the two regions has led to major losses in global risk-driven markets amid concerns about a possible dissolution of NATO as Trump plans immediate moves to seize Greenland.
Adding to tensions, Trump has said he will impose a 200% tariff on French wines and champagnes as he wants French President Emmanuel Macron to join his Board of Peace Initiative, aimed at resolving global conflicts.
“I will put a 200% tariff on his wines and champagnes, and he will participate, but he doesn’t have to participate,” Trump said.
JUST IN – Reporter: Can you respond to Macron saying he will not join the peace administration?
Trump: Nobody wants him…I’ll put a 200% tariff on his wines and he’ll join in pic.twitter.com/S5pTcTbTvn
— Insider Paper (@TheInsiderPaper) January 20, 2026
This caused jitters in the crypto world, with a total liquidation of $361 million, of which $124 million came from Ethereum longs alone.
Moreover, the crypto fear and greed index remains in the fear zone after several weeks of extreme fear, showing that investor sentiment has softened but is still cautious and the market may be undervalued.
Ethereum Price Analysis: The Drop Is a Warning Sign
Ethereum’s price is currently trading around $3,050-$3,150, trying to stabilize after a sharp decline. While buyers defend the psychological support at $3,000, the overall price action signals caution rather than strength.
The recent decline followed a strong rejection from the $3,600-$3,700 region, where Ethereum failed to stay above the 50-day Simple Moving Average (SMA).
This barrier caused continued pressure from the bears, pushing the price down towards the $2,750-$2,800 demand zone, a historically key support area aligned with the 0.786 Fibonacci retracement.
Ethereum is currently trading near the 50-day SMA ($3,090), which acts as short-term support. However, the price remains decisively below the 200-day SMA near $3,660, which still acts as a key overhead resistance.
Momentum indicators also reflect this caution. The Relative Strength Index (RSI) is hovering around 45, below the neutral level of 50. This suggests that bearish momentum has waned, but bullish momentum has not yet returned.
ETH Price Prediction: $2,600 Level in Sight
Failure to hold $3,000 would increase the risk of another decline to $2,800-$2,750, close to the Fibonacci level of 0.786. A breakdown below this demand zone would expose the cycle low at $2,620, which still acts as a crucial level for the bulls to defend.
Conversely, it could make another attempt at the USD 3,350 resistance zone, an area that has repeatedly capped and blocked any upward move.
A breakout above this range could open the door for a retest of $3,660 at the 200-day SMA level.
For Ethereum to realistically re-enter a bullish structure and target the $4,000 region, it would need a sustained trend reversal, starting with a decisive close above the 200-day SMA.
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