Ethereum (ETH) has faced a sharp price downturn, falling over 11% within the past 24 hours. This article breaks down the key factors contributing to this decline and analyzes the ETH/USDT chart for deeper insights.
Macroeconomic Factors and Market Sentiment
The crypto market is under global economic pressure, especially following the recent tariffs imposed by U.S. President Donald Trump. These measures have raised fears of a global trade war, impacting cryptocurrencies like Ethereum negatively as investors steer clear of riskier assets. Significant liquidations have occurred, with over $240 million in ETH positions liquidated in 24 hours.
Technical Analysis: Unpacking the ETH/USDT Chart
The chart shows ETH losing momentum, breaking below a previously established ascending channel. The price is now below the 200-day EMA, indicating a bearish trend. The 4-hour chart reveals the price touching the lower boundary of a descending channel, where rebounds have historically occurred.
Looking Ahead: Possible Scenarios
A rebound from current lows could push the price towards the $2000-2050 range. A more significant recovery would require a shift in market sentiment and better macroeconomic conditions. The total crypto market cap has decreased by 5.6% in the past 24 hours, now at $2.7 trillion.
Ethereum's price drop reflects current global market conditions and technical signals within the crypto market. The future price movement depends on resolving global economic tensions and a renewed Investor interest in cryptocurrencies.
