Geopolitical tensions and recent tariff announcements have significantly impacted Ethereum's price movement today. The imposition of new tariffs by the U.S. and China has heightened fears of a trade war, leading to a substantial sell-off in the crypto market. Ethereum's price plummeted to a low of approximately $2,671 before partially recovering after a temporary agreement with Mexico and Canada delayed proposed tariffs. Despite this recovery, investor sentiment remains fragile, contributing to Ethereum's ongoing volatility. Additionally, Eric Trump's social media endorsement of Ethereum provided a temporary boost, but broader market dynamics, including leveraged trading and Ethereum's role in decentralized finance, continue to exert pressure on the asset.
The Volatility Shares Trust 2x Ether ETF (ETHU) experienced a notable increase, rising 8.41% to $4.90 at 1:00 PM on Tuesday, February 4.