Market Alert: Ethereum Tests Critical Support Level
Ethereum (ETH) has plunged to a critical psychological level of $2,000, marking its lowest point since November 2023. The dramatic decline comes amid heightened market volatility triggered by U.S. President Donald Trump’s recent trade war threats, sending shockwaves through the crypto market.
Market Impact and Technical Analysis
The second-largest cryptocurrency by market cap has witnessed a staggering 15% decline in the last 24 hours, with the broader crypto market following suit. The CoinDesk 20 index, tracking major digital assets, has dropped by 16%, highlighting the widespread impact of this market downturn.
Key market statistics:
- Liquidations: $165 million in ETH long positions liquidated in 12 hours
- ETF Outflows: -$335 million in the past week
- Market Sentiment: 76% probability of ETH hitting $1,900 by month-end
Institutional Sentiment and Market Outlook
The bearish momentum has been exacerbated by several macro factors:
- Trade war concerns
- Rising inflation fears
- Stock market weakness
- Diminishing risk appetite
- Weak institutional demand
Expert Analysis and Future Projections
Market analysts suggest that the current price action could lead to further downside if the $2,000 support level fails to hold. The massive liquidation event and substantial ETF outflows indicate a potential shift in market structure that could have lasting implications for ETH’s price trajectory.
Source: CoinDesk