Ethereum’s Wild Week: How Trump’s Tariff Reversal Sparked a $3K Rebound
Cryptocurrency markets reacted sharply this week after former US President Donald Trump reversed plans for new tariffs on European countries. The sudden policy shift came late on Wednesday, January 22, 2026, and sent ripples through both trade and digital asset markets. Ethereum’s price, in particular, saw notable swings as traders adjusted positions amid shifting economic expectations.
Ether (ETH) experienced a turbulent few days following Trump’s announcement. The cryptocurrency initially dropped 13.8% over three days, falling back to the $2,900 support level—a low not seen in four weeks. Negative sentiment deepened as ETH perpetual futures funding rates turned negative on Wednesday, triggering the liquidation of $480 million in bullish bets within 48 hours.
The downturn extended to US-listed Ether exchange-traded funds (ETFs), which recorded $230 million in net outflows on Friday. This marked a sharp reversal from the previous week’s inflow trend, signalling waning investor confidence in the short term. Yet, the market quickly shifted direction. After Trump confirmed the suspension of 10% tariffs (due in February) and 25% tariffs (planned for June), ETH rebounded above $3,000. The relief in trade tensions appeared to ease pressure on risk assets, including cryptocurrencies. Meanwhile, Ethereum’s network fees dropped by 20%, offering some respite to users. In contrast, competing blockchains Solana and BNB Chain saw fee hikes of 36% and 27%, respectively, as activity on those networks climbed.
The tariff reversal has, for now, stabilised Ether’s price above a key psychological level. While ETH futures traders faced heavy liquidations earlier in the week, the policy change triggered a rebound. Network fee trends also highlighted shifting user behaviour, with Ethereum benefiting from lower costs as competitors grew more expensive.
