ETH trades at $2,551.29, down 3.85% daily, 34.91% yearly.
BTC drops to $108,115.02, declining 4.21% in seven days.
Trump’s 50% EU tariff starts June 1, impacting crypto prices.
ETH surged to $2,731 but crashed after tariff news.
Technical analysis predicts a potential short squeeze for ETH, BTC.
#Ethereum #bitcoin #TrumpTariffVsCrypto #MarketVolatility
Ethereum (ETH) and Bitcoin (BTC) faced sharp declines on May 23, 2025, following the announcement of new tariffs by President Trump. The crypto market experienced significant volatility as investors reacted to the news.
ETH is currently trading at $2,551.29, down 3.85% in the last 24 hours. Despite a 41.12% gain over the past month, ETH has dropped 34.91% year-over-year and 2.67% in the last seven days. Earlier today, ETH surged to $2,731 but crashed after the tariff news broke.
BTC also took a hit, falling below $110,000. It now trades at $108,115.02, down 4.21% over the past day. The tariff announcement has triggered widespread selling pressure across the crypto market.
Trump’s Tariff Announcement Shakes Crypto Market
President Trump recommended a 50% tariff on the European Union, set to take effect on June 1, 2025. This decision has sparked concerns about global trade tensions and their impact on financial markets, including cryptocurrencies.
The tariff news reversed ETH’s earlier gains, pulling it down from its daily high. BTC, which had been trending near $111,951.87, also declined sharply after the announcement.
The crypto market has been sensitive to macroeconomic policies, and this development has intensified selling pressure.
Technical Analysis Signals Potential Short Squeeze
A technical analysis chart from Bitcoinsensus indicates that liquidity is accumulating in the crypto market. Top assets like Bitcoin and Ethereum are seeing an influx of early short positions, which could lead to a significant short squeeze.
The chart highlights a right-angled descending broadening wedge pattern for ETH, suggesting a potential breakout. Despite the current downturn, the technical setup indicates that a reversal could be on the horizon. However, the tariff policy’s broader economic impact may continue to influence market sentiment in the near term.