Ethereum's price has taken a hit due to a combination of factors. One major reason is the decline of Bitcoin's price, which has a ripple effect on the entire cryptocurrency market, including Ethereum.
The current market volatility, fueled by US recession fears and trade tensions, has led to a decline in risk-on assets, including Ethereum. The recent increase in long liquidations, where traders are forced to sell their positions, has accelerated the price drop.
Another factor contributing to Ethereum's decline is regulatory uncertainty, particularly surrounding the approval of Ethereum ETFs. The delay or rejection of these ETFs could impact investor confidence and, in turn, affect Ethereum's price.
From a technical perspective, Ethereum's price drop has broken below key support levels, confirming a bearish trend.$ETH However, some analysts believe that Ethereum is primed for big gains, citing on-chain developments and increasing adoption . $ETH