Ethereum's price movement today has been heavily influenced by the broader market reaction to U.S. President Donald Trump's announcement of new tariffs on major trading partners, including China, Canada, and Mexico. This announcement triggered a risk-off sentiment across global financial markets, leading to a significant sell-off in cryptocurrencies. Ethereum, in particular, experienced a sharp decline, dropping as much as 27% to $2,135 earlier in the day. The market's volatility was exacerbated by Ethereum's significant role in decentralized finance markets, which amplified the impact of the sell-off.
Despite the initial plunge, Ethereum's price has shown signs of recovery as news emerged of a one-month delay in the implementation of tariffs on Mexico. This development provided some relief to the market, allowing Ethereum to regain some of its lost ground. Additionally, the market witnessed notable buying activity from major investors, such as the "7 Siblings" group, who purchased a substantial amount of Ethereum at lower prices, indicating confidence in a potential rebound.
Ethereum's price has managed to recover to $2,881.80, marking a 0.44% increase for the day.