Key Points
Ethereum’s value has dropped to below $2,100.
This is the lowest it’s been since December 2023.
The drop is largely attributed to fears around Trump’s tariffs.
Market Reactions and Indicators
In the past 24 hours, Ethereum has seen a 15% decrease, trading at $2,063.
This data comes from crypto.news.
This fall comes after a temporary rally following Trump’s announcement of a U.S. Crypto Strategic Reserve.
This announcement had briefly pushed Ethereum’s value above $2,500.
However, the market’s sentiment shifted following Trump’s confirmation of new tariffs on China, Canada, and Mexico.
These tariffs, set to go into effect on March 4, have raised concerns about economic instability.
This shift in sentiment caused Ethereum’s price to drop below its pre-rally level of about $2,190.
Signs of Ethereum’s declining momentum are also seen in the decentralized finance activity and the Ethereum futures market.
Open interest in Ethereum futures has dropped by 10% in the last day, according to data from Coinglass.
Additionally, DeFi’s TVL has reached its lowest point this year, dropping from $71 billion in January to $48.1 billion as of March 4.
Since March 1, there has been a $109 million outflow of stablecoins, indicating a decrease in liquidity.
This is according to data from DeFiLlama.
Large Ethereum holders, or “whales”, seem to be reducing their holdings.
Lookonchain reported a significant transaction on March 4.
In this transaction, 30,000 Ethereum, worth about $68 million, was transferred to FalconX and Galaxy Digital from a wallet connected to Genesis.
Technical indicators suggest a higher risk of Ethereum’s value declining further.
The RSI is nearing the oversold mark at 34, indicating reduced buying pressure.
Moving averages suggest a strong downtrend, with Ethereum trading below key levels such as the 10-day EMA at $2,338 and the 50-day SMA at $2,852.
Despite conflicting indications from oscillators, negative momentum and MACD readings suggest growing bearish sentiment.
The nearest support is at $2,069, with resistance at $2,163 and $2,321.
If the bearish trend continues, Ethereum may see further drops in the coming days.
Potential turning points could be on the horizon.
The Ethereum Pectra upgrade is scheduled for April.
This upgrade is expected to improve scalability and staking flexibility, possibly attracting more network activity.
Investors are also closely watching the first White House Crypto Summit on March 7.
This event may provide more details about Trump’s plans for his crypto strategic reserve.
