Ethereum (ETH) is experiencing a significant downturn, with prices dropping to $1755, a decline of over 11% within the last 24 hours. This drop aligns with various factors including macroeconomic pressures and market liquidations.
Macroeconomic Pressures and Market Sentiment
The crypto market is reeling from global economic uncertainty, primarily 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 a global trade war, with retaliatory tariffs raising concerns about inflation and high interest rates. Such 'risk-off' environments have historically negatively impacted cryptocurrencies as investors shy away from volatile assets like Ethereum.
Technical Analysis: Unpacking the ETH/USDT Chart
Technical analysis reveals Ethereum’s long-term trend and recent decline. The ascending channel pattern has formed since early 2023, indicating bearish momentum as the price breaks below the lower trendline. Moving averages, such as the 200-day EMA, support this outlook with current prices well below as a dynamic resistance.
Financial Outlook and Impact on the Crypto Market
The total market cap of the crypto industry has dropped by over 5.6% in the last 24 hours, now sitting at $2.7 trillion. This highlights a significant shift in investor sentiment and emphasizes the need for resolving global trade tensions.
The current downturn in Ethereum’s price prompts analysts to focus on macroeconomic and technical factors, forming a bearish forecast for the cryptocurrency in the near term. Recovery might be expected only with a resolution of global trade conflicts or renewed buyer interest.
