Ethereum's price movement today has been heavily influenced by the ongoing trade tensions between the U.S. and China, which have led to increased market volatility. The imposition of fresh tariffs by both countries has rattled investor sentiment, causing a sell-off in the crypto markets. Ethereum, with its significant role in decentralized finance, has been particularly susceptible to these macroeconomic shocks. Analysts have noted that the token's exposure to leveraged trading dynamics has exacerbated its decline. Despite a temporary recovery following a delay in proposed tariffs on Canada and Mexico, the renewed trade tensions have once again turned investor sentiment sour.
Adding to the complexity, Ethereum's network recently adjusted its gas limit for the first time since 2021, increasing it to over 30 million gas units. While this change could potentially enhance the network's productivity by allowing more transactions per block, it also raises concerns about increased computational load on nodes, which could affect network decentralization and security. This technical adjustment, coupled with the broader market uncertainties, has contributed to Ethereum's fluctuating price.
Ethereum's price has decreased by 2.02% today, currently trading at $2,825.09. The cryptocurrency reached a high of $2,886.30 and a low of $2,671.70 during the day.