Ethereum has faced a sharp price decline amid broader market turmoil and macroeconomic pressures. Let's examine the key factors of this drop and analyze the ETH/USDT chart for deeper insights.
Macroeconomic Pressures and Market Sentiment
The crypto market is suffering from global economic uncertainties, particularly due to recent tariff measures by U.S. President Donald Trump. These measures have sparked fears of a global trade war, negatively impacting volatile assets like Ethereum. A similar pattern was observed during the March 2020 market crash.
Technical Analysis: Unpacking the ETH/USDT Chart
The technical chart shows a bearish outlook for Ethereum. Since its recovery in 2023 and peak at $3,900 in 2025, an ascending channel formed which has recently been broken, confirming a bearish trend. The 4-hour chart reveals a descending channel with attempted rebounding off the lower boundary.
Impact on the Cryptocurrency Market
The overall crypto market cap has dropped to $2.7 trillion, highlighting the seriousness of recent sell-offs. A shift in market sentiment, potentially driven by resolutions of current trade issues, will be necessary for a turnaround.
Ethereum's prices have fallen due to macroeconomic and technical factors. In the future, with improvements in the global economic situation and market stabilization, changes in the current bearish trend may occur.
