Ethereum's price movement today has been heavily influenced by geopolitical tensions and macroeconomic factors. The imposition of fresh tariffs between the US and China has rattled markets, leading to a sharp decline in Ethereum's value. Analysts have pointed out that Ethereum's significant role in decentralized finance makes it particularly vulnerable to leveraged trading dynamics, which exacerbated the selloff. Despite a temporary recovery following a trade agreement delay with Mexico and Canada, investor sentiment soured again as the tariff situation escalated, causing further downward pressure on Ethereum.
Adding to the volatility, a massive outflow of nearly $1 billion worth of Ether from centralized exchanges was observed, marking the largest single-day exodus in over a year. This suggests that some investors took advantage of the price drop to accumulate Ether at lower prices. However, the overall sentiment remains bearish, with the market still reeling from the impact of the trade war and the unwinding of Ethereum's deflationary effects post-Merge. The recent adjustments to Ethereum's gas limit, aimed at increasing network capacity, have not been enough to offset the negative market sentiment.
Ethereum's price has experienced a significant drop of 8.39% today, with the current price standing at $2,641.31. The cryptocurrency reached a high of $2,886.30 earlier in the day but has since fallen to a low of $2,639.95.