Cryptocurrency markets are going through a significant period of turmoil due to recent global developments. US President Donald Trump's raising of tariffs on China by up to 104% has reignited global trade war concerns. These developments have brought about sharp sell-offs in leading altcoins like Ethereum. ETH has lost 10% of its value in the last 24 hours, falling to the $1,400 level. A 20% decrease on a weekly basis, 30% on a monthly basis, and 60% on a yearly basis is noteworthy.
Red Alert from Bloomberg: Is Ethereum on the Verge of $1,000?
Bloomberg analyst Mike McGlone argues that Ethereum could be the leader of the market downturn. According to McGlone, ETH's decline may not be limited to itself; other risky assets are also likely to move downwards in a similar fashion. The analyst points out that the $1,000 level could be a critical support line for Ethereum. Looking at technical indicators, ETH is currently in the oversold region. While short-term moving averages falling below long-term moving averages typically signal a potential for recovery in classical technical analysis, weekly charts suggest that this recovery may take time.
Crypto Market in the Shadow of Trade Wars
Trump's aggressive trade policies are affecting not only traditional markets but also the crypto ecosystem. Major projects like Ethereum, in particular, can lose investor confidence in such uncertain environments. On the other hand, the fact that countries like Vietnam, India, and Taiwan have begun negotiations with the US to establish new trade agreements is among the promising developments for the market. It is believed that such diplomatic steps could have a positive impact on the markets in the medium term.
The possibility of Ethereum falling to the $1,000 level cannot be dismissed given the current market structure. However, technical analysis data suggests signals of a potential short-term recovery. Nevertheless, the uncertain environment is causing investors to act cautiously. Closely monitoring ETH price movements is more important than ever for risk management during this period.
