The Volatility Shares Trust 2x Ether ETF (ETHU) closed down 36.96% at $4.52 on February 3, as Ethereum's price fell 4.94% to $2,727.55 amid escalating global trade tensions. President Trump's imposition of tariffs on Canada, Mexico, and China has triggered fears of inflation and economic uncertainty, leading to a broad sell-off in financial markets. Ethereum, heavily involved in decentralized finance (DeFi) markets, has been particularly affected due to its susceptibility to leveraged trading dynamics. The market witnessed Ethereum's largest liquidation event in over two years, with nearly $170 million of collateral sold to meet margin calls on platforms like Aave V3. This has injected a risk-off sentiment, prompting traders to seek downside protection through put options, further exacerbating the volatility. The put-call ratio surged, indicating a rush for downside protection, while market makers withdrew liquidity, adding to the volatility.