Ethereum has experienced a substantial price drop influenced by various factors, including macroeconomic conditions and technical market signals. Let’s examine these factors in detail.
Macroeconomic Pressures and Market Sentiment
The crypto market is adversely affected by global economic uncertainty, triggered by tariff implementations by U.S. President Donald Trump in March 2025. These actions have fueled fears of a global trade war. Simultaneously, there is significant liquidation in the crypto market, with over $240 million in ETH positions liquidated within a 24-hour span.
Technical Analysis: Unpacking the ETH/USDT Chart
From a technical standpoint, the current Ethereum chart indicates a downward trend. Since early 2025, ETH reached a high of $3,900, but since then, a bearish channel has formed, and the price has fallen below key support levels. Key moving averages (MAs) also point to a continued bearish trend.
Impact on the Overall Crypto Market
The total cryptocurrency market cap has fallen by over 5.6% in the past 24 hours to $2.7 trillion. This illustrates the ongoing decrease in market activity and investment in crypto assets.
These factors underscore the current pressure on Ethereum and the broader crypto market. A resolution of global economic issues and a shift in market sentiment may be needed for price recovery.
