Recent analysis from the Kobeissi Letter reveals that Ethereum (ETH) has shed nearly 50% of its value since the 2024 bull run that followed President Trump’s election victory. This steep decline comes as the broader crypto market, which recently hit a three-month high of $3.895 trillion, has fallen by 30% according to Coingecko data. On Friday, ETH was trading at approximately $2,102—a drop of over 10.5% in 24 hours and 22.8% over the past week, levels not seen since December 2023.
Forced Liquidations and Technical Signals
Data from Coinglass indicates that about $211 million in Ethereum liquidations occurred in the last 24 hours, with long positions comprising nearly $181 million of the total. This wave of forced sell-offs has intensified the downward pressure on ETH. Technical analysis shows that Ethereum is hovering near the crucial $2,000 support level. A breach of this threshold could pave the way for further declines towards $1,800. Conversely, a break above $2,500 might trigger a rally, with potential targets around $2,870 and even $3,400, though current trends point to sustained weakness.
Broader Market Concerns
The entire cryptocurrency market is in turmoil, driven partly by a significant hack that caused Bybit to lose approximately $1.4 billion in ETH. Moreover, uncertainty has been fueled by new tariff measures imposed by President Trump on Canada and Mexico, which have rattled investor confidence. Bitcoin has dipped below $80,000, and altcoins like Solana have experienced severe declines, indicating that overall sentiment remains bearish.
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