Ether Price Plummets Amid Trade War Fears, But Investors Seize the Opportunity

Ether, the second-largest cryptocurrency by market capitalization, saw a sharp decline in price on Monday due to escalating concerns over a potential U.S.-led trade war, which led to a sell-off in riskier assets. However, data reveals that investors quickly capitalized on the price drop, snapping up ether at a discount.

According to IntoTheBlock, nearly $1 billion worth of ether was withdrawn from centralized exchanges on Monday, marking the highest single-day net outflow since January 2024. This suggests that traders were eager to buy the dip as the price dropped. “The movement indicates that investors were quick to take advantage of the lower prices to build or increase their ether positions,” IntoTheBlock stated in a Telegram update.

The price of ether dipped as low as $2,000 on some exchanges due to a drop in market liquidity and an uptick in futures sell-offs. However, the price quickly rebounded to $2,800, although market sentiment remains cautious. According to UltraSound.Money, this price movement suggests that the deflationary impact of Ethereum’s Merge is beginning to unwind.

Ether ETFs Experience Record Trading Volumes Amid Market Volatility

On the same day, Ether exchange-traded funds (ETFs) saw a surge in trading volumes as the volatile market prompted traders to adjust their portfolios. Around $1.5 billion worth of ether ETF shares were traded, with BlackRock’s iShares Ethereum Trust (ETHA) leading the pack, accounting for half of the volume, according to Bloomberg data.

Despite the large volumes, overall ETF flows were relatively stable. Farside Investors noted that ether ETFs saw a net inflow of $83.6 million on Monday, with Fidelity’s Ethereum Fund (FETH) drawing the majority of new capital. Interestingly, ETHA, still the largest of the ether ETFs, saw no net inflows.

Later in the day, Eric Trump, the son of President Donald Trump, took to X to encourage his followers to buy ether, calling it “a great time to invest.” His tweet helped fuel the already volatile price action, causing ether’s price to spike back up to nearly $2,900 before settling at $2,780, a 3.5% increase over the previous 24 hours.