- Ethereum has plummeted 15% in 24 hours, testing price levels not seen since November 2023.
- The crypto market decline is linked to volatility from Donald Trump‘s trade war threats, with nearly $165 million in ETH long positions liquidated in 12 hours.
- Institutional sentiment remains weak with Ether ETFs seeing $335 million in outflows last week.
Ethereum prices are in freefall, dropping 15% over the last 24 hours and reaching lows not seen since November 2023. The second-largest cryptocurrency by market capitalization is collapsing amid broader market turmoil triggered by U.S. President Donald Trump’s trade war threats, dragging down the entire digital asset sector.
The CoinDesk 20 index, which tracks the performance of the largest digital assets, has tumbled 16% according to CoinDesk Indices data. This dramatic decline reflects heightened anxiety across cryptocurrency markets as investors respond to macroeconomic uncertainty.
Market liquidation data shows the severity of Ethereum’s downward spiral. According to CoinGlass, nearly $165 million in ETH long positions have been forcibly closed in just the past 12 hours, indicating widespread margin calls as traders’ bullish positions collapse under selling pressure.
Ethereum’s underperformance over the past three months stems from multiple factors, including persistently bearish investor sentiment, weak institutional demand, and mounting macroeconomic headwinds. Concerns about potential trade wars, persistent inflation, and broader stock market weakness have substantially reduced risk appetite among investors.
Prediction markets are adjusting to the new price reality. Bettors on Polymarket currently assign a 76% probability that Ethereum will reach $1,900 before the end of March, reflecting adjusted expectations amid the selling pressure.
Institutional investment patterns further confirm the negative sentiment. Ether ETF outflows reached a concerning -$335 million last week based on data from SoSoValue, demonstrating that professional investors continue to reduce exposure to the digital asset.
The confluence of technical selling pressure, weak institutional demand, and broader economic concerns presents a challenging environment for Ethereum in the near term as markets recalibrate expectations amid heightened volatility.
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