Ethereum has fallen below $2,100, hitting its lowest level since December 2023 as Trump tariff concerns rattle markets.
According to the price statistics provided by crypto.news, the cryptocurrency has experienced a decline of 15% over the course of the last twenty-four hours, and it is currently trading at $2,063.
In the wake of Donald Trump’s declaration on March 2 regarding a U.S. Crypto Strategic Reserve, which momentarily lifted Ethereum prices above $2,500, the cryptocurrency had a brief surge that has since waned.
The market sentiment, on the other hand, has shifted as a result of Trump’s confirmation that new tariffs on China, Canada, and Mexico will go into effect on March 4. This has raised concerns about the wider economic instability.
The announcement prompted the price of Ethereum to plunge, falling below the level it had reached prior to the pump, which was approximately $2190. Indicators of Ethereum’s waning momentum include both the decentralized financial activities and the Ethereum futures market.
Coinglass data indicates that open interest in Ethereum futures has decreased by ten percent during the course of the previous day. On the other side, DeFi TVL has reached its lowest point of the year, falling from $71 billion in January to $48.1 billion as of March 4 according to the latest available data.
According to the data provided by DeFiLlama, there has been a drop in liquidity; stablecoin outflows of $109 million have occurred since March 1st. It would appear that Ethereum whales are also reducing the amount of cryptocurrency they own.
The noteworthy transaction that was reported by Lookonchain was that on March 4, 30,000 Ethereum, which is equivalent to approximately $68 million, was transferred from a wallet that was related to Genesis to FalconX and Galaxy Digital.
On the technical front, Ethereum is exhibiting a bigger danger of depreciation than other cryptocurrencies. At 34, the relative strength index (RSI) is heading toward oversold territory, which indicates that there is less purchasing pressure.
With ETH trading below key levels such as the 10-day exponential moving average (EMA) at $2,338 and the 50-day simple moving average (SMA) at $2,852, moving averages point to a strong downward trend.
Negative momentum and MACD readings suggest that bearish sentiment is developing, despite the fact that oscillators give indicators that are in disagreement with one another. With resistance at $2,163 and $2,321, the closest support, which is located at $2,069, is located.
Should the bearish trend continue, it is possible that Ethereum will face additional declines in the days ahead. It’s possible that certain impending events will serve as a turning point.
During the Ethereum Pectra update, which is scheduled to take place in April, it is anticipated that scalability and staking flexibility will be improved, which may result in increased network activity.
The inaugural White House Crypto Summit, which will take place on March 7, is another event that investors are keeping a careful eye on. This summit may reveal additional information regarding Trump’s ambitions for his cryptocurrency strategic reserve.
