Ethereum is experiencing a sharp price drop, falling to $1,755, a decrease of over 11% within the last 24 hours. This decline is tied to macroeconomic pressures and technical signals.
Macroeconomic Pressures and Market Sentiment
The crypto market is under pressure from global economic uncertainty triggered by U.S. President Donald Trump's recent tariff impositions. These measures have sparked fears of a global trade war, potentially leading to increased inflation and high interest rates, which traditionally negatively impact cryptocurrencies. Additionally, significant liquidations in the crypto market have accelerated Ethereum's price drop, as evidenced by reduced open interest in ETH futures.
Technical Analysis: Unpacking the ETH/USDT Chart
The ETH chart shows a long-term downtrend. Key indicators and levels reveal a bearish outlook: the price is significantly below the 200-day EMA, acting as dynamic resistance. A 4-hour chart further reveals a descending channel, suggesting a potential price rebound after hitting the lower boundary.
Outlook on the Crypto Market
The overall crypto market cap currently stands at $2.7 trillion, having declined by over 5.6% in the last 24 hours. ETH price recovery is possible with a shift in market sentiment, potentially driven by resolving global trade tensions.
The current economic and market situation is exerting significant pressure on Ethereum, compelling investors to exercise caution in their decisions. Recovery may require substantial changes in global economic conditions and market sentiment.
