Ethereum is experiencing a significant price drop, reaching $1,755, a decline of over 11% in the last 24 hours. Let's examine the key factors contributing to this drop and conduct a technical analysis for deeper insights.
Macroeconomic Pressures and Market Sentiment
The crypto market is affected by global economic uncertainty, primarily triggered by recent tariffs imposed by U.S. President Donald Trump. These measures have sparked fears of a trade war, impacting cryptocurrencies like Ethereum. Additionally, significant liquidations have accelerated Ethereum's price drop.
Technical Analysis: Unpacking ETH/USDT Chart
From a technical perspective, the current chart indicates a downward trend. After peaking at $3,900 in early 2025, Ethereum's price has been declining, showing bearish signals. Falling below the 200-day EMA suggests further challenges for price recovery.
Overall Picture and Future Outlook
The combined market cap of the entire crypto industry currently stands at $2.7 trillion, indicating a decline of 5.6% over the last 24 hours. Significant changes in economic and market conditions are needed for potential recovery.
Amid current macroeconomic factors and technical signals, Ethereum faces significant challenges in its path to recovery. Resolution of global trade tensions could foster conditions for a shift in market sentiment.
