As Ethereum faces a price downturn, we examine the key contributing factors and conduct a technical analysis.
Macroeconomic Factors and Market Sentiment
The crypto market is under pressure from global economic uncertainty related to US President Donald Trump's imposed tariffs. These measures have sparked fears of a global trade war and inflation, negatively impacting riskier assets like Ethereum. Additional pressure comes from the liquidation of significant ETH positions, accelerating the price drop.
ETH/USDT Chart Analysis
Technical analysis shows Ethereum has lost upward momentum, breaking below the ascending channel. The price lies below the 200-day EMA, confirming a bearish sentiment. However, recovery is possible if the price rebounds from current lows towards the $2000-2050 region.
Impact on the Cryptocurrency Market
The total market capitalization of the crypto industry sits at $2.7 trillion, a decrease of 5.6% in recent days. Ethereum's price drop adds to market volatility and reduces participant interest.
Ethereum's price drop is tied to global macroeconomic factors and technical signals, affecting the overall state of the cryptocurrency market.
