Alert!! 🚨
As of May 16, 2025, Ethereum (ETH) is trading at $2,601.70, reflecting a 2.57% increase from the previous close. The price has fluctuated between $2,496.89 and $2,603.75 today.
📉 Recent Volatility Due to Trade Policies
Ethereum's price has experienced significant volatility in recent months, influenced by U.S. trade policies under President Donald Trump. Notably, in early February 2025, ETH plunged by up to 27% following Trump's announcement of tariffs on imports from Canada, Mexico, and China. This move triggered a broader market sell-off, with over $2.21 billion in crypto liquidations reported within 24 hours .
Conversely, Trump's proposal to establish a U.S. Crypto Strategic Reserve, including Ethereum, led to an initial 13% rally in ETH prices. However, skepticism regarding the plan's implementation and subsequent tariff announcements tempered the bullish momentum .
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🔍 Current Market Outlook
Despite recent setbacks, Ethereum has shown resilience, outperforming Bitcoin in May 2025 with a 45% gain, driven by the successful Pectra upgrade, which enhanced staking and interoperability with layer-2 chains . The ETH/BTC ratio and rising open interest in ether derivatives indicate increased investor confidence and participation.
However, ongoing geopolitical tensions and trade policy uncertainties continue to pose risks to the crypto market's stability. Investors should remain vigilant and consider these factors when making investment decisions.