Ethereum is experiencing a significant price decline in the context of broader market turbulence. Primary reasons include macroeconomic pressures and market liquidations.
Macroeconomic Factors and Market Sentiment
Global economic uncertainty has pressured the crypto market after US President Donald Trump imposed tariffs on imports from Mexico, Canada, and China. This created fears of a global trade war and inflation, typically negatively impacting risk assets like Ethereum. Additional pressure came from market liquidations; data shows over $240 million positions wiped out over a 24-hour period, with $196.27 million from long liquidations.
Technical Analysis: Unpacking the ETH/USDT Chart
Technical analysis of the ETH/USDT chart shows Ethereum’s long-term trend is under pressure. The price has broken below the ascending channel, confirming a bearish bias, and is now trading at $1,881. The 4-hour chart reveals a descending channel; a bounce from current lows might lead to $2000-2050.
Crypto Market Overview
The combined market cap of the entire crypto industry currently stands at $2.7 trillion, reflecting a drop of over 5.6% in the last 24 hours.
The current situation with Ethereum and the crypto market remains tense. Key factors for the decline include macroeconomic risks and bearish technical signals.
