The cryptocurrency market has suffered one of its biggest sell-offs since 2022, and Ethereum was no exception! The price of $ETH has plummeted 40% in just a few days, hitting $2,080 – its lowest value since January 2024. But what’s behind this sudden collapse? Like this post and keep reading to find out!
Ethereum Faces Strong Sell-Off and Fear Sentiment
The $ETH drop did not happen in isolation. The entire market was hit by a wave of risk aversion after U.S. President Donald Trump announced new trade tariffs on imports from Canada, Mexico and China. Canada's response with tariffs of its own added to the uncertainty.
As a result, investors fled to safer assets, and $2.32 billion worth of crypto positions were liquidated in 24 hours! Ethereum led the way, recording $626 million in liquidations.
Open Interest do ETH cai 28% – traders recuam!
Another worrying fact was the 28% drop in Ethereum’s Open Interest (OI), from $31.2 billion to $22.6 billion in less than three days. This shows that many futures traders had to close their positions abruptly, which could continue to pressure the market.
Recovery or new danger in sight?
After hitting a low of $2,080, Ethereum recovered by around 30%, returning to trading at around $2,700. However, analysts warn that there is still no confirmation of a trend reversal.
Key points to keep an eye on:
✅ $ETH has lost support from the 200-day moving average – a level that is difficult to recover quickly.
✅ The liquidation event may keep investors away until the macro picture becomes clearer.
✅ The market may enter a consolidation phase below $3,000 as it tries to recover.
Do you think Ethereum could regain its strength soon? Leave a comment and share this analysis with other investors!
Fonte: Cointelegraph
Disclaimer: This content is not investment advice. Please do your own research and be fully informed before making any decisions.
