Ethereum's price has experienced a significant drop today, driven by a combination of market-wide sell-offs and geopolitical tensions. The catalyst for this downturn appears to be the announcement of new tariffs by U.S. President Donald Trump on imports from Canada, Mexico, and China, which has sparked fears of a global trade war. This has led to a risk-off sentiment among investors, causing a sharp decline in cryptocurrency prices, including Ethereum. The market correction has resulted in substantial liquidations, with Ethereum alone seeing over $600 million in long positions liquidated in the past 24 hours.
Adding to the pressure on Ethereum's price was the movement of large amounts of ETH by dormant whales to exchanges like Bitfinex, which occurred just before the market downturn. This movement of funds has raised questions about whether it was a strategic decision or coincidental timing. The sudden activity from these long-inactive wallets contributed to the selling pressure, exacerbating the price decline. Analysts have noted that Ethereum's technical indicators are showing bearish signals, with the price falling below key support levels, further fueling concerns about its short-term outlook.
Ethereum's price has fallen by 11.21% today, currently trading at $2,547.65. The cryptocurrency reached a high of $2,869.29 earlier in the day but dropped to a low of $2,326.97.