Ethereum is experiencing a notable price drop, falling to $1,755 and losing over 11% in the last 24 hours. This decline aligns with broader market turbulence driven by macroeconomic factors and technical signals. Let’s explore the key contributing factors and analyze the ETH/USDT chart for deeper insights.
Macroeconomic Pressures and Market Sentiment
The crypto market is under pressure due to global economic uncertainty, primarily caused by tariffs imposed by U.S. President Donald Trump. These measures have sparked fears of a global trade war, raising concerns about inflation and high interest rates. In such unstable conditions, investors tend to avoid volatile assets like Ethereum. Additionally, the market faces pressure from position liquidations, with over $240 million in ETH wiped out within 24 hours. Data shows $196.27 million accounted for long liquidations, accelerating Ethereum’s price decline.
Technical Analysis of ETH/USDT
From a technical standpoint, the charts reveal Ethereum’s long-term decline. Ethereum peaked at approximately $3,900 in early 2025, followed by a descending channel formation indicating weakening momentum. The chart also shows the current price below the 200-day exponential moving average. A further analysis of the 4-hour time-frame chart shows a descending channel, with the price touching the lower channel line. Historically, rebounds have occurred at such levels, potentially reaching the $2000-2050 range.
Impact on the Entire Crypto Market
Ethereum’s price decline impacts the overall crypto market capitalization, falling over 5.6% in the past 24 hours to $2.7 trillion. This decline is attributed to general macroeconomic factors and technical signals exerting pressure on investors.
Ethereum faces significant challenges due to both macroeconomic conditions and technical factors. The outcome will depend on resolving global trade disputes and improving market sentiment.
