Key Points
The price of Ethereum (ETH) has plunged sharply in the last 24 hours.
It’s currently trading around $2,500.
This significant drop in Ethereum’s price is due to a sharp decline of nearly 20%.
The drop has pushed Ethereum’s price below the critical $3,000 support level.
Global Market Uncertainty Triggers Crypto Drop
This downturn is a result of broader financial market uncertainty.
This uncertainty was sparked by Trump’s decision to impose 25% tariffs on Canada, Mexico, and China.
Given the correlation of cryptocurrencies with traditional financial markets, ETH and other digital assets have followed this downward trend.
Data from Coinglass indicates that panic selling among large Ethereum holders, or ‘whales’, has played a role in the crash.
These whales have offloaded significant amounts of Ethereum, triggering a wave of liquidations.
Crypto trader MaxBecauseBTC shared his thoughts on the situation on his X profile.
He told his 66K followers that this is the biggest Ethereum liquidation event in over two years.
He compared it with the March 2020 COVID crash and stated that “those that stick around will be rewarded.”
MaxBecauseBTC’s optimism is shared by others in the crypto community.
Felix Hartmann, founder of Hartmann Capital, posted on X that the recent downturn was due to “forced selling”.
He suggested that the prices may be dislocated due to this.
Similarly, Mechanism Capital partner Andrew Kang suggested on X that ETH may be oversold.
He believes it could recover to $2,700.
