Donald Trump's new tariffs against China and other countries have caused a sharp decline in Bitcoin and altcoins. Although recovery followed, analysts warn of potential risks for Ethereum.
Crypto's Reaction to Tariffs
Trump-imposed tariffs led to significant price drops in the crypto market. Despite a partial recovery, concerns remain over the impact of an escalating US-China conflict.
Andrew Kang's Analysis
Andrew Kang, co-founder of Mechanism Capital, noted on his X account that if the US-China trade conflict continues, the Ethereum (ETH) price could drop to $2,200-$2,400. He also mentioned a short-term resistance level for ETH at $2,900-$3,000.
Ethereum: Whale Buying Activity
Despite the losses, Ethereum attracted attention from major investors, known as whales, who saw this as a buying opportunity. A whale, with over $1 billion in cryptocurrency, bought a significant amount of ETH following the August drop. As of the time of writing, Ethereum is trading at $2,710.
Trump's tariffs have increased volatility in the crypto market. Despite the recovery, investors should consider potential risks for Ethereum in case of an escalating conflict.
