Ethereum Faces Intense Pressure Amid Market Turmoil

Ethereum (ETH) has experienced a significant decline, dropping over 10% in the past week and breaching key support levels. This downturn coincides with the imposition of new tariffs on Chinese goods by Donald Trump, which has led to a global market slump. Ethereum has fallen to its lowest point since early 2023, indicating the bears' dominance.

Institutional investors, including World Liberty Financial, have contributed to the sell-off by offloading large amounts of ETH, signaling a lack of confidence in a quick recovery. This trend is mirrored in Bitcoin, which remains tied to global financial conditions, as evidenced by substantial ETF outflows.

The crypto market is also grappling with structural outflows, exacerbated by political and economic uncertainties. Rising U.S. Treasury yields suggest panic, further impacting Ethereum. The future remains uncertain, with potential rebounds hinging on macroeconomic improvements.