Ethereum Drops Below Key Levels as Trade War Fears Weigh on Crypto Markets

Ethereum (ETH) has tumbled to its lowest point since November 2023, as escalating trade war tensions triggered by U.S. President Donald Trump spark volatility across financial markets.

Over the past 24 hours, ETH has declined by 15%, according to CoinDesk Indices, dragging the CoinDesk 20 index down by 16% as risk assets face heavy selling pressure.

The recent downturn extends a three-month trend of weakness for Ethereum, driven by soft institutional demand, underperformance relative to Bitcoin (BTC), and broader macroeconomic challenges, including inflation concerns and a struggling stock market.

CoinGlass data shows that roughly $165 million in long ETH positions have been liquidated in the last 12 hours, highlighting the impact of the price decline on leveraged traders.

On Polymarket, traders now assign a 76% probability that ETH will reach $1,900 by the end of the month, signaling ongoing bearish sentiment.

Institutional investors are also showing signs of caution, with Ethereum ETF outflows totaling -$335 million last week, according to data from SoSoValue.