Mechanism Capital partner Andrew Kang has predicted that if China really launches a trade war against the US, Ethereum will fall back to the $2,200-2,400 range.
China’s US Tariff War Could Push Ethereum to $2,200-$2,400?
Back to 2200-2400 if China trade war is real https://t.co/DYcujirvYO
— Andrew Kang (@Rewkang) February 4, 2025
Right after the recent market slump, Andrew Kang stated in a separate X post that “ETH may be oversold at present, and it is worth buying now, or it may rebound to $2,700.” However, since Kang’s last predictions, the Tariff Commission of the State Council of China issued an announcement that from February 10, 2025, tariffs will be imposed on some imported goods originating from the US.
As per the announcement, 15% tariff will be imposed on coal and liquefied natural gas, and a 10% tariff will be imposed on crude oil, agricultural machinery, large-displacement cars, and pickup trucks. The ‘tit-for-tat’ move, once again pushed the market in a downtrend.
Currently, Ethereum is trading at $2,706 after an uptick of 4.9% in the past day. The 24 hour market volume has gone down by over 30% to $55.86 billion, indicating that traders have halted panic sell-offs.
China Slaps Tariffs on US Too
With the approval of the State Council, China’s Tariff Commission announced a 10% tariff on crude oil, agricultural machinery, large-displacement cars, and pickup trucks in addition to the 15% tariff.
Moreover, China’s Ministry of Commerce and General Administration of Customs have imposed export controls on items related to tungsten, tellurium, bismuth, molybdenum and indium.
In light of Google being suspected of violating the Anti-Monopoly Law of the People’s Republic of China, China’s State Administration for Market Regulation has launched an investigation into Google in accordance with the law.
Also Read: Vitalik Buterin Proposes Strategic Rollups Support for Ethereum L1, L2 Expansion
