Ethereum's price has been significantly impacted today by escalating trade tensions between the U.S. and China, which have rattled investor confidence in risk assets. The announcement of new tariffs by China on U.S. imports has contributed to a volatile market environment, leading to a sell-off in cryptocurrencies, including Ethereum. This geopolitical uncertainty has led to a cautious approach among investors, as highlighted by Min Jung, an analyst at Presto Research, who noted that "cryptocurrencies could react similarly to stocks due to their perception as risk assets."
Adding to the pressure on Ethereum, World Liberty Financial, a DeFi project backed by President Donald Trump, transferred a substantial amount of Ethereum to Coinbase Prime. This move fueled speculation about potential asset sales, although the firm clarified that the transfers were part of routine treasury management. Despite these reassurances, the market remains jittery, with investors wary of further volatility.
Ethereum's price has dropped by 6.37% today, currently trading at $2,699.56. The cryptocurrency reached a high of $2,886.30 earlier in the day but has since fallen to a low of $2,671.70.