Ethereum (ETH) has experienced a significant price decline today, dropping over 11% in the past 24 hours to around $1,755, marking its lowest level since October 2023 . Several factors are contributing to this downturn:
1. Macroeconomic Pressures
Recent trade tensions have escalated due to U.S. President Donald Trump's imposition of tariffs—25% on goods from Mexico and Canada, and 10% on Chinese imports. These measures have sparked fears of a global trade war, leading to economic uncertainty and a "risk-off" environment where investors shy away from volatile assets like cryptocurrencies .
Binance
2. Massive Liquidations
The crypto market has seen significant liquidations, with over $240 million worth of ETH positions wiped out within a 24-hour period, including $196.27 million in long liquidations. This forced selling from leveraged traders has accelerated Ethereum’s price drop .
Binance
3. DeFi Loan Risks
A $74 million DeFi loan on the Sky protocol, collateralized with $130 million in ETH, nearly faced liquidation after Ether's price fell below the liquidation threshold. Such situations increase selling pressure as borrowers scramble to stabilize their positions .
Cointelegraph
4. Security Breach at Bybit
A security breach at cryptocurrency exchange Bybit resulted in the unauthorized transfer of approximately 401,347 ETH, valued at $1.12 billion, from its cold wallet. The incident has heightened investor concerns, contributing to Ethereum's price decline .
Coinlive
5. Large-Scale ETH Sales
Tron founder Justin Sun has sold approximately $143 million worth of ETH recently, triggering a sharp price drop. His significant transactions have put additional pressure on Ethereum's price .
Coinpedia Fintech News
These factors combined are contributing to Ethereum's current price downturn.
