ETH, DOGE Price Outlook: Trump’s New Tariffs and the Impact on Cryptocurrencies

A new wave of tariffs announced by U.S. President Donald Trump has injected caution into the markets, and industry watchers are particularly concerned about the impact on Ethereum (ETH), which has already been facing headwinds this year.

Trump revealed on Sunday that he plans to impose a 25% tariff on all steel and aluminum imports to the U.S., in addition to the existing tariffs. Further, he is set to introduce reciprocal tariffs later in the week on all countries. The combination of these announcements and an uptick in inflation expectations has already started to shake up the market. Notably, a key indicator that predicted Bitcoin’s surge beyond $100,000 when it was trading under $70,000 turned bearish on Sunday.

Despite this, the major cryptocurrencies, including Bitcoin, Ether, XRP, Solana’s SOL, and Dogecoin (DOGE), were relatively unchanged as of Monday afternoon in Europe. Bitcoin, ether, and Dogecoin all saw slight increases of under 1%, while Binance Coin (BNB) experienced a 4.5% dip after Sunday’s rally. Meanwhile, U.S. stock futures were up by 0.46%, showing mild optimism ahead of the New York market open.

The tariffs bring an element of uncertainty to the economy, potentially escalating trade tensions, which could cause market fluctuations. This typically drives investors away from riskier assets, including cryptocurrencies, toward more stable investments. As a result, analysts are expecting a possible pullback in the crypto space, particularly for Ether.

The overall sentiment in the crypto market remains weak, with Ethereum’s performance lagging behind Bitcoin’s, as the Bitcoin-to-Ethereum ratio has dropped to levels not seen since 2021. This indicates that investors are favoring Bitcoin over Ethereum, and ETH is underperforming as a result.

“Bitcoin has clearly outpaced Ethereum, which is seeing a record amount of short interest,” said Augustine Fan, head of insights at SignalPlus. “The lack of a clear narrative or major developments for Ethereum is likely to continue to hold it back in the foreseeable future.”

Additionally, Ethereum’s price has been impacted by the unwinding of gains made in late November 2024, which has led to further losses for holders. Analysts are also noting that, with inflation concerns high, traders expect only one interest rate cut from the Federal Reserve in 2025, which would add further pressure to risk assets like crypto.

Looking ahead, QCP Capital, based in Singapore, is predicting significant volatility in the crypto markets, with Trump’s tariff announcements continuing to stir reactions. “A feedback loop is forming. President Trump, aware of market movements, may further escalate tensions, fueling more volatility,” they said in a message on Monday.

“Bitcoin volatility is skewed towards downside protection for now, with limited upside catalysts expected until April,” the firm concluded.