Ethereum and the broader crypto market are under pressure, with sharp declines in value causing investor concern.
Crypto Market Red Trend
This week, the cryptocurrency world has predominantly been in a downtrend. Amidst a recent hack that caused the Bybit exchange to lose approximately $1.4 billion in ETH tokens, Ethereum continues to drop. In the last 24 hours alone, Ethereum fell over 10.5%, and 22.8% over the last week. According to Coingecko, the global crypto market has dropped by 30% from its recent three-month high of $3.895 trillion.
Ethereum Trend Analysis
Data from Coinglass reveals around $211 million in Ethereum liquidations over the past day. The ongoing price decline has triggered a wave of forced sell-offs, adding pressure to the already heavy downward trend. The critical support level around $2,000 could prove crucial, as it dictates the near-term direction.
Reasons for Crypto Market Dip
Market impacts also stem from political decisions, such as Trump's tariff impositions on Canadian and Mexican goods. Analysts highlight that uncertainty over cryptocurrency policy negatively affects investor sentiment, leading to the market's further decline.
The exacerbation of negative sentiment in the crypto market and political uncertainty pose additional risks and uncertainties for crypto investors in the near future.
