Ethereum (ETH) is experiencing a significant price drop, reaching $1,755, over 11% down in the last 24 hours. This decline is attributed to global economic factors, market liquidations, and technical bearish signals.
Macroeconomic Pressures and Market Sentiment
The crypto market is under pressure due to global economic uncertainty, triggered by U.S. President Donald Trump's recent imposition of tariffs: 25% on goods from Mexico and Canada, and 10% on Chinese imports. These measures, enacted in early March 2025, have sparked fears of inflation and sustained high interest rates, negatively impacting volatile assets like Ethereum. Additionally, the market faced ETH position liquidations worth over $240 million within a 24-hour period, with $196.27 million accounting for long liquidations.
Technical Analysis: Unpacking the ETH/USDT Chart
From a technical perspective, the chart illustrates Ethereum's long-term trend and recent decline. It shows the formation of an ascending channel with a bearish structure, confirming the price drop below the lower trendline and the current trading level at $1,881. Moving averages further indicate a bearish outlook, with the price significantly below the 200-day EMA at $2,904. On a shorter time frame, the 4-hour chart indicates a descending channel with potential support at the lower trendline.
Outlook and Potential Price Movements
The current market cap of the entire crypto industry stands at $2.7 trillion, decreasing by over 5.6% in the past 24 hours. For ETH to rebound, a significant shift in market sentiment is required. A potential bounce from current levels could see the price move to the $2000-2050 range, with further gains possibly targeting $2450 under more favorable conditions.
Ethereum is facing a complex set of factors putting pressure on its current price. Future movements will depend on resolving global trade tensions and changing market sentiment.
