Ethereum is facing a significant drop, with prices falling to $1,755, a decline of over 11% within the last 24 hours. Let's explore the key factors contributing to this fall and analyze the ETH/USDT chart.
Macroeconomic Pressures and Market Sentiment
The crypto market is experiencing global economic uncertainty triggered by U.S. President Donald Trump's recent tariff impositions. These measures have sparked fears of a global trade war. Such environments drive investors away from volatile assets like Ethereum. Significant market liquidations have also pressured the crypto market, with recent data showing over $240 million of ETH positions liquidated within 24 hours.
Technical Analysis: Unpacking the ETH/USDT Chart
From a technical perspective, the chart shows a bearish outlook in the short term. Ethereum reached a recent high of $3,900 in 2025, but is currently declining. Moving averages support the bearish trend as the price is below the 200-day EMA. A 4-hour chart reveals a descending channel, with prices touching the lower trend line, a potential rebound point.
Market Outlook
A significant shift in market sentiment, potentially through resolving global trade tensions or renewed buying pressure, is needed for a trend reversal. The total market capitalization of the crypto industry is currently $2.7 trillion, down 5.6% in the last 24 hours.
Currently, a significant portion of the pressure on Ethereum is due to macroeconomic factors and technical signals pointing to a short-term bearish sentiment. However, improvements in global economic conditions may change this outlook.
