Ethereum (ETH) is experiencing a significant drop, with prices falling to $1755, a decline of over 11% in the last 24 hours. We break down the key factors contributing to this drop and analyze the ETH/USDT chart for deeper insights.
Macroeconomic Pressures and Market Sentiment
The crypto market is reeling from global economic uncertainty, primarily triggered by U.S. President Donald Trump’s recent imposition of tariffs—25% on goods from Mexico and Canada, and 10% on Chinese imports. These measures, enacted in early March 2025, have sparked fears of a global trade war, with retaliatory tariffs from affected nations raising concerns about inflation and high interest rates. Historically, such 'risk-off' environments have negatively impacted cryptocurrencies as investors shy away from volatile assets like Ethereum.
Technical Analysis: Unpacking the ETH/USDT Chart
From a technical perspective, the chart shows ETH’s long-term trend and recent decline. Ethereum’s recovery started in 2023, but recent data indicates an ascending channel formation, suggesting weakening momentum. The price has broken below the channel’s lower trendline and is currently trading below the 200-day EMA. The 4-hour chart reveals a descending channel, with a historical pattern of bounces at such levels.
Conclusion: Future Outlook
The combined market cap of the entire crypto industry currently sits at $2.7 trillion, dropping by over 5.6% in the last 24 hours. Further recovery in Ethereum will require a significant shift in market sentiment, potentially driven by resolving global trade tensions or renewed buying interest.
Ethereum's price continues to face pressure from a combination of macroeconomic factors and technical indicators. Investors should be ready for volatility in the near term and take external economic conditions into account.
