TraderEye Market View: Gold vs. Ethereum – Inverse Correlation at a Turning Point?

Friday, April 4, 2025

Gold vs. Ethereum – Inverse Correlation at a Turning Point?

📈 Attached: 4H Chart Showing the Inverse Correlation Between Gold and Ethereum

🟡 Gold Hits All-Time High, Ethereum Lags Behind

In recent weeks, we’ve witnessed a striking inverse correlation between gold and Ethereum. While gold surged to a new all-time high, driven by macroeconomic uncertainty and rising demand for safe-haven assets, Ethereum retreated sharply, dropping to as low as $1,745.

This divergence reflects shifting investor sentiment: capital has flowed into gold amidst global risk aversion, while crypto assets—particularly Ethereum—have experienced outflows due to tightening liquidity and risk-off positioning.

💥 Impact of Trump's Economic Policy & Tariff Announcement

Following former President Trump’s announcement of a new tariff policy, gold—after making historic highs—reversed sharply, suggesting a potential shift in sentiment or a peak in safe-haven demand.

Simultaneously, Ethereum has shown signs of stabilization, attempting to form a local bottom and recover.

🔄 The Inverse Correlation – A Setup for Reversal?

✅ Chart Analysis: The attached 4-hour chart displays a clear inverse correlation, with gold peaking as Ethereum bottoms. The recent drop in gold aligns with a slight bullish rebound in ETH, suggesting a potential pivot.

✅ Sentiment Shift: If gold's pullback continues, and broader risk appetite returns, Ethereum may benefit, especially if investors begin reallocating capital toward higher-risk assets.

✅ Technical Trigger? Ethereum appears to be forming a potential bottoming structure, with growing interest near the $1,750 support zone—raising the probability of a short-term bullish breakout.

⚠️ Legal Disclaimer

This analysis is for informational and educational purposes only and does not constitute financial advice. The author is not a licensed financial advisor or investment consultant. Trading cryptocurrencies and commodities involves significant risk, including potential loss of capital. Past performance is not indicative of future results. Always conduct independent research or consult a qualified professional before making any investment decision.

📊 Will Ethereum rise as gold cools off?
This inverse relationship could present a high-conviction opportunity for traders watching macro flows and intermarket dynamics. Stay tuned.

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