Ether (ETH) has dropped by over 14.30% in the last 24 hours to reach around $2,330 on Feb. 25, its lowest point since the month’s beginning.
ETH/USD four-hour price chart. Source: TradingView
The ETH price downturn comes amid several negative fundamentals, such as:
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US President Donald Trump’s renewed tariff threats.
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Largest crypto market liquidation since the Feb. 3 market rout.
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Weakening technicals that put ETH price at risk of falling below $2,000.
Trump’s latest tariff threats dampen risk mood
Ethereum is down today as investors react to renewed trade tensions under President Trump.
What to know:
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On Feb. 24, Trump confirmed that sweeping tariffs on Canada and Mexico would take effect next week, ending a temporary pause.
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The announcement follows his Feb. 1 executive order imposing 25% tariffs on Mexican and Canadian goods, with an additional 10% duty on Canadian energy.
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These tariffs were initially delayed after diplomatic talks with Mexico and Canada.
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Markets have turned risk-averse, mirroring the downside reaction seen on Feb. 3 when Trump first threatened tariffs on Canada, Mexico, and China.
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Stocks and cryptocurrencies like Ethereum have declined as a result of renewed trade tensions.
BTC/USD and Nasdaq 100 Futures vs. Gold four-hour performance chart. Source: TradingView
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Meanwhile, gold has surged 12% this year as investors seek safer assets.
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But Fed officials have reiterated no urgency to cut interest rates.
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Higher interest rates and trade uncertainty are adding macroeconomic pressure on risk assets like Ethereum.
Over $1.34 billion crypto positions liquidated
Ethereum’s price decline coincides with the crypto market’s highest liquidations since the Feb. 3 rout.
Key takeaways:
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In the past 24 hours, $1.34 billion in crypto liquidations occurred.
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Long positions accounted for $1.25 billion of total liquidations, significantly outpacing short liquidations at $87.09 million.
Crypto market liquidation heatmap (24 hours). Source: Coinglass
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Ethereum liquidations totaled $294.12 million, with a majority of them being long positions.
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Similar liquidation trends were observed on Feb. 3, when Ethereum dropped due to Trump’s tariffs and leverage washouts.
ETH total liquidations chart vs. ETH price. Source: CoinGlass
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High liquidation volumes indicate excessive leverage and sudden market moves, contributing to Ethereum’s decline.
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Traders getting liquidated en masse leads to forced selling, amplifying price drops in ETH and other crypto assets.
Ethereum risks another 20% drop
Ether price has entered the breakdown stage of its prevailing bear pennant pattern, signaling further downside in the days and weeks ahead.
Key points:
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On Feb. 23, Ethereum broke below the lower trendline of its bear pennant pattern.
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Such a move, if accompanied by a rise in volumes, hints at a potential breakdown.
ETH/USD daily price chart. Source: TradingView
Related: Can Ether recover above $3K after Bybit’s massive $1.4B hack?
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Applying the same rule on Ether brings its downside target to $1,945, down about 20% from the current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.