Ethereum Slumps 50% Amid Hack Fallout, Tariff Woes, and Market Turmoil

Broader Market Concerns

Recent analysis from the Kobeissi Letter reveals that Ethereum (ETH) has shed nearly 50% of its value since the 2024 bull run that followed President Trump’s election victory. This steep decline comes as the broader crypto market, which recently hit a three-month high of $3.895 trillion, has fallen by 30% according to Coingecko data. On Friday, ETH was trading at approximately $2,102—a drop of over 10.5% in 24 hours and 22.8% over the past week, levels not seen since December 2023.

Forced Liquidations and Technical Signals

Data from Coinglass indicates that about $211 million in Ethereum liquidations occurred in the last 24 hours, with long positions comprising nearly $181 million of the total. This wave of forced sell-offs has intensified the downward pressure on ETH. Technical analysis shows that Ethereum is hovering near the crucial $2,000 support level. A breach of this threshold could pave the way for further declines towards $1,800. Conversely, a break above $2,500 might trigger a rally, with potential targets around $2,870 and even $3,400, though current trends point to sustained weakness.

Broader Market Concerns

The entire cryptocurrency market is in turmoil, driven partly by a significant hack that caused Bybit to lose approximately $1.4 billion in ETH. Moreover, uncertainty has been fueled by new tariff measures imposed by President Trump on Canada and Mexico, which have rattled investor confidence. Bitcoin has dipped below $80,000, and altcoins like Solana have experienced severe declines, indicating that overall sentiment remains bearish.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Ethereum Slumps 50%

Sujit Kumar

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.