Gold, Silver Rally to ATH But Ethereum Slips Below $3,100

Ethereum and the broader cryptocurrency market declined over the past 24 hours as escalating geopolitical tensions between the US and European Union fueled risk aversion among investors.

Meanwhile, traditional safe-haven assets rallied sharply, with gold surging to fresh record highs and silver also touching new peaks amid flight-to-quality flows triggered by President Trump’s renewed tariff threats against several European nations over the Greenland dispute.

Spot gold climbed 1.1% to around $4,725 per ounce as of early trading on January 20, approaching its all-time high near $4,795 set late last year, according to market data.

The metal has extended its relentless bull run into 2026, bolstered by safe-haven demand as investors brace for potential transatlantic trade disruptions.

The silver price also advanced by nearly 1% to hit a new record high of $95.3/oz.

ETH price was trading at $3,095 as of 4:29 a.m. EST after a 3.6% drop in the last day, as the crypto market also dropped over 2% to a $3.15 trillion market capitalization, according to Coingecko data.

Crypto Market Rattled As Trump Tariffs Dent Risk

During the weekend, Trump threatened that he would impose import tariffs of up to 25% on several major European nations, including Denmark, France, and the US, until they reached a deal to hand over Greenland to Washington.

The US president’s demands were widely rejected by European leaders, with France seen preparing retaliatory economic measures against the United States.

The exchange between the two regions has sparked deep losses across global risk-driven markets, on concerns over a potential dissolution of NATO, as Trump plans direct steps to get Greenland.

To add to the tensions, Trump has said that 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’ll put a 200% tariff on his wines ​and champagnes, and he’ll join, but he ​doesn’t have to join,” Trump said.

JUST IN – Reporter: Can you respond to Macron saying he will not join the board of peace?

Trump: Nobody wants him… I’ll put a 200% tariff on his wines and he’ll join pic.twitter.com/S5pTcTbTvn

— Insider Paper (@TheInsiderPaper) January 20, 2026

This sent jitters in the crypto space, with total liquidations coming in at $361 million, $124 million being from Ethereum longs alone.

Moreover, the crypto Fear & Greed Index remains in the fear zone after several weeks of extreme fear, which shows 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 the $3,050–$3,150 range, attempting to stabilize after a sharp decline. While buyers are defending the $3,000 psychological support, the overall price action suggests caution rather than strength.

The recent move lower followed a strong rejection from the $3,600–$3,700 region, where Ethereum failed to hold above the 50-day Simple Moving Average (SMA).

This barrier triggered sustained pressure from the bears, sending the price down toward the $2,750–$2,800 demand zone, a historically important support area aligned with the 0.786 Fibonacci retracement.

Ethereum is currently trading near the 50-day SMA ($3,090), which is acting as short-term support. However, the price remains decisively below the 200-day SMA near $3,660, which continues to act as a major overhead resistance.

Momentum indicators also reflect this caution. The Relative Strength Index (RSI) is hovering around 45, below the neutral 50 level. This suggests that bearish momentum has eased, 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 pullback toward $2,800–$2,750 near the 0.786 Fibonacci level. A breakdown below this demand zone would expose the $2,620 cycle low, which still acts as a critical level for the bulls to defend.

Conversely, it may attempt another push toward the $3,350 resistance zone, an area that has repeatedly capped and barred any upside moves.

A breakout above this range could open the door for a retest of $3,660 on 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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