Ether (ETH) plunged 15% in 24 hours, crashing to $2,000. A price last seen in November 2023, as Trump’s trade war threats spooked investors. Over $165 million in long positions evaporated, while ETF outflows hit $335 million. Analysts warn volatility could worsen.
ETH Plunges 15% as Trade War Fears Grip Markets
Ether nosedived to $2,000 early Monday, mirroring broader crypto declines. The CoinDesk 20 Index fell 16%, dragged by a souring risk appetite. Meanwhile, Trump’s 20% tariff hike on Chinese goods ignited fears of prolonged trade wars. Investors fled volatile assets, compounding ETH’s three-month slump. Bearish sentiment, weak institutional demand, and macroeconomic risks further pressured prices.
Market analysts link the drop to Trump’s aggressive trade policies. “Tariffs disrupt global liquidity,” said Maria Chen of BlockTrends. “Crypto, as a risk asset, suffers first.”
$165 Million in Long Positions Liquidated Amid Sell-Off
Liquidation cascades battered ETH traders, erasing $165 million in bullish bets within 12 hours. CoinGlass data reveals margin calls spiked as prices breached key support levels. Following this, leveraged positions unwound rapidly, accelerating ETH’s freefall.
Retail traders faced the brunt, with many underwater by midday. “Stop-losses triggered a domino effect,” noted derivatives trader Jake Lin. “The $2,000 break was catastrophic.”
Bettors Predict 76% Chance ETH Hits $1,900 by Month’s End
Polymarket traders now price a 95% likelihood of ETH sinking to $1,900 by March 31. This pessimism follows last week’s $335 million ETF exodus, per SoSoValue. Furthermore, institutional interest waned as macro uncertainty soared.
“The $1,900 target reflects fear, not fundamentals,” argued crypto strategist Rahul Kapoor. However, technical charts suggest bears dominate short-term momentum.
Ether ETFs Bleed $335 Million as Investors Retreat
U.S. Ether ETFs recorded $335 million in outflows last week, signalling eroding confidence. BlackRock’s iShares Ethereum Trust saw its steepest withdrawals since launch. Additionally, tariff-induced stock market wobbles diverted capital to safer havens.
In contrast, Bitcoin ETFs saw modest inflows. “ETH’s underperformance highlights its sensitivity to macro risks,” said Fidelity analyst Lisa Guo.
Trump’s Tariff Surge Ignites Global Trade Tensions
Trump’s 20% Chinese import tariff and threats against Canada, Mexico, and the EU upended markets. The White House cited fentanyl trade disputes, but China vowed retaliation. Reports suggest Beijing will target U.S. agriculture, a sector central to prior trade wars.
“Tariffs could reignite 2018-style chaos,” warned economist David Lee. Inflationary pressures may also rise, squeezing consumer spending and crypto investment.
Technical Weaknesses and Macro Risks Cloud Ethereum’s Path
ETH’s $2,000 retest hinges on shaky technicals. Analysts note $1,890 as critical support; a breach could trigger another 10% drop. However, Ethereum’s Pectra upgrade, which boosts transaction efficiency, offers some long-term hope.
Yet Trump’s tariffs loom large. “Trade wars could delay institutional adoption,” cautioned Galaxy Digital’s Mike Novogratz. Until macro winds shift, ETH’s recovery remains fragile.
Can Ethereum stabilise?
Ether’s fate now ties closely to geopolitical developments. While upgrades and ETF potential provide a foundation, escalating tariffs threaten to derail progress. Traders eye the $1,900-$2,000 range as a make-or-break zone. For now, caution rules crypto markets.
Written By Fazal Ul Vahab C H
