Ethereum has faced a significant price decline amid macroeconomic factors and market pressures. We analyze what's influencing the current situation of the cryptocurrency.
Macroeconomic Pressures and Market Sentiment
Ethereum has dropped over 11% in the last 24 hours, reaching $1,755 according to Coingecko. This decline aligns with broader market instability, partly caused by recent tariffs imposed by U.S. President Donald Trump. With 25% tariffs on goods from Canada and Mexico and 10% on imports from China, economic tensions heighten. Investors shy away from volatile assets like cryptocurrencies amid 'risk-off' environments. Additional pressure comes from market liquidations, with over $240 million in ETH positions liquidated over a 24-hour period.
Technical Analysis: Unpacking the ETH/USDT Chart
Technical analysis shows a downward trend with Ethereum losing momentum. The break below the lower trendline confirms a bearish outlook. Support at $1,881 is noted, with prices below the 200-day EMA acting as dynamic resistance. The 4-hour chart reveals a descending channel, with potential bounce room towards the $2000-2050 region. Further growth would require a shift in market sentiment.
Market Prospects and Conclusions
The total market cap of the crypto industry stands at $2.7 trillion, with a drop of over 5.6%. Improvement in technical and market indicators may rely on stabilization in global trade and external economic factors.
Ethereum faces challenging times amid global uncertainty and market pressures. Potential rebounds at technical levels could signal recovery with an improved macroeconomic situation.
