$ETH plummeted by 132 points! Did you keep up with this wave?
This morning, ETH suddenly plummeted from 3080 to 2950, and retail investors were quite scared.
Don't panic, this drop is mainly caused by the tariff bomb thrown by Trump, who threatened that if Russia and Ukraine do not reach an agreement within 50 days, he will impose a 100% tariff on Russia. The U.S. is also sanctioning countries that buy Russian oil, and a global trade war is on the verge of breaking out, spreading panic in the market. As a highly volatile asset, ETH was directly treated as a cash machine to be sold off. Institutional investors took the opportunity to wash out the market with this news, while retail investors were cutting losses, they might be quietly picking up chips.
From a technical perspective, the 1-hour candlestick shows a clear plummet: a large bearish candlestick directly broke through the key support level near the high of 3080, and all technical indicators point to a bearish trend. Strong support below is at 2940, and further down is the hell mode at 2900. The trading volume increased during the plunge, but the rebound had no volume, indicating that panic selling has occurred, and those buying the dip are still watching.
In the short term, institutional investors may cause fluctuations around 2950 to force retail investors to cut losses. If 2940 is held, it may rebound to 2980-2990, but if it falls below 2900, it will stop loss and run.
In the medium term, we need to see if the trade war will ease. If it eases, along with expectations of Cancun upgrades and ETF fund inflows, ETH is still bullish in the long term. The tariff black swan will eventually pass, and the underlying logic of ETH remains unchanged. Institutional investors are most afraid of retail investors not cutting losses, so stay steady, don’t panic!
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