Ethereum’s price has experienced a significant downturn, plunging more than 14.30% over the past 24 hours to approximately $2,330, marking its lowest level since the beginning of February. The decline has been attributed to several negative influences, including U.S. President Donald Trump’s renewed tariff threats and the largest wave of crypto market liquidations since early February, combined with technical weakness that risks pushing Ethereum’s price below $2,000.
President Trump’s recent tariff announcements have exacerbated market anxiety, leading to risk aversion similar to the aftermath of Trump’s initial tariff threats at the start of February. On February 24, Trump declared that previously postponed tariffs on Canadian and Mexican goods would commence the following week. This reflects an extension of the President’s aggressive trade strategy, which initially imposed 25% tariffs on goods from Mexico and Canada and an extra 10% duty on Canadian energy imports. The financial markets, including stocks and cryptocurrencies, have reacted negatively to these looming trade tensions.
Amid a broader flight to safer assets, gold has appreciated by 12% this year. Nevertheless, Federal Reserve officials resist immediate interest rate cuts, maintaining a high-interest-rate environment which, alongside global trade uncertainties, further pressures risk assets like Ethereum.
In the last 24 hours, crypto liquidations have reached a peak of $1.34 billion, with Ethereum accounting for $294.12 million of this figure. Long positions bore the brunt, totaling $1.25 billion in liquidations, vastly overshadowing the $87.09 million in short positions. This liquidation volume underscores excessive market leverage and has intensified the adverse price movement for Ethereum, as widespread liquidations force additional selling, exacerbating its decline.
Technically, Ethereum’s current price movement indicates the beginning of a potential 20% sell-off, as it breaks down from a bear pennant pattern on February 23. This pattern suggests further downside risks, potentially driving the price toward $1,945 if the breakdown unfolds with increased trading volumes.
This market analysis highlights significant risks but is not intended as investment advice. Investors are urged to undertake their own research before making any trading decisions.
