Ethereum (ETH) Price Surges 21% After Trump Announces Pause On China Tariffs

Ethereum surprised the market with a powerful bounce on Wednesday, surging more than 21% from its recent low of $1,380.

U.S. President Donald Trump announced on Wednesday a 90-day pause on reciprocal tariffs for all countries except China, and this development has brought some optimism to global markets.

Following this announcement, several risk assets saw a strong recovery, especially in the cryptocurrency domain. Among the top gainers is Ethereum (CRYPTO: ETH), which surged more than 21% from its recent low of $1,380.

Announced earlier this week, Trump’s decision to halt new tariffs for 90 days will affect all countries except China, which is still subject to a 145% tariff on $250 billion worth of goods. This move comes amid escalating trade tensions between the US and other nations, particularly China, which has led to increased tariffs on various products.

The Trump administration has been using tariffs as a tool to try and renegotiate trade deals that it believes are unfair to the U.S. However, these tariffs have had a significant impact on businesses and consumers around the world.

In the past few months, the Trump administration has imposed tariffs on $300 billion worth of Chinese goods, and China has retaliated with tariffs on $110 billion worth of U.S. goods. These tariffs have covered a wide range of products, including food, textiles, and machinery.

The Trump administration has also been critical of the European Union’s trade practices, and has threatened to impose tariffs on cars and other goods imported from the EU.

Despite the recent move to pause new tariffs, it remains to be seen whether the Trump administration will be able to reach a trade agreement with China or other countries before the 90-day period expires.

CryptoQuant’s on-chain data reveals that despite the impressive rally, the price of Ethereum is still lagging behind its realized price. This figure represents the average price at which all the ETH in circulation last moved.

Typically, when the spot price falls below the realized price, it indicates that the market is in a strong accumulation phase, with opportunistic traders and long-term investors capitalizing on discounted levels.

This scenario usually presents a high-probability buying zone, a sight that is often seen once per cycle, presenting a unique opportunity for contrarian investors to disregard short-term noise and macroeconomic uncertainty.

However, in the present cycle, this scenario has unfolded in a broader macroeconomic context of heightened uncertainty, largely driven by the ongoing U.S.-China trade dispute, which has kept market participants on edge.

Earlier this week, the Trump administration announced a 90-day reprieve on new tariffs, focusing specifically on France, Germany, Spain, and China.

This decision follows months of escalating trade tensions, particularly with China, which saw rolling tariffs imposed on $400 billion worth of goods.

Although this move to stall new tariffs is being viewed positively by market analysts, who anticipate a period of calm, several economists have expressed skepticism, predicting that the Trump administration might introduce another round of tariffs once the 90-day period concludes.

Despite this caveat, the announcement had a noticeable impact on risk assets, with global equities opening higher and the U.S. futures market showing gains of 0.7% in the morning session.

After a turbulent few months, crypto traders also observed a shift in the market, with several major coins like Bitcoin (CRYPTO:BTC) and Ethereum showing signs of recovery.

At the time of writing, Bitcoin is trading up 6% in the past 24 hours and 14% in the past seven days. Meanwhile, Ethereum has risen more than 10% in the past 24 hours and over 20% in the past seven days.

Other major coins like Cardano (CRYPTO:ADA) and Polkadot (CRYPTO:DOT) also saw triple-digit gains in the past seven days.

In other news, the latest data from Glassnode shows that Bitcoin’s Long-Term Holder (LTH) supply is now at a 16-month high. According to on-chain analytics firm Glassnode, the portion of Bitcoin that has remained dormant for more than 155 days has reached a total of 10.1 million coins.

This development comes after a period of persistent selling pressure, mainly driven by short-term holders (STH), who typically hold coins for less than 100 days. However, LTHs have remained largely unfazed by the recent price fluctuations and have continued to accumulate their BTC holdings throughout the bear market.

As the price of Bitcoin falls below the realized price, it indicates that on-chain value is being destroyed. However, this scenario usually presents a high-probability buying zone, a sight that is often seen once per cycle.

This presents a unique opportunity for contrarian investors to disregard short-term noise and macroeconomic uncertainty, focusing instead on the long-term potential of the asset.

According to CryptoQuant analyst Maperoğlu, this scenario