Ethereum (ETH) has faced a sharp decline, losing over 11% in the last 24 hours. We explore the key factors driving this drop and perform a technical analysis of the ETH/USDT chart for deeper insights.
Macroeconomic Pressures and Market Sentiment
The crypto market is under pressure from global economic uncertainty triggered by recent U.S. tariff impositions by President Donald Trump. These measures have raised fears of a global trade war, which historically affects cryptocurrencies negatively. Additionally, significant market liquidations amounting to over $240 million within 24 hours have exacerbated Ethereum’s price decline.
Technical Analysis: Unpacking the ETH/USDT Chart
Technical analysis reveals that Ethereum is in a downward trend. The charts show a break below its lower trendline, confirming a bearish outlook. Ethereum's price has dropped below the 200-day Exponential Moving Average, indicating further market pressure.
Looking Ahead: Future Prospects for Ethereum
On the 4-hour chart, a descending channel is observed. Historically, rebounds have occurred from such levels, possibly reaching the $2000-2050 range, though significant growth would require positive developments in global trade conditions.
Ethereum is facing numerous challenges due to global economic factors and internal market conditions. Ongoing macroeconomic risks and market liquidations create a bearish outlook for the near term.
