Ether (ETH) price declined by over 5% in the last 24 hours to around $1,900 on March 28. Ether’s bearish performance mirrored similar downside moves elsewhere in the cryptocurrnecy market, with the total capitalization falling by approximately 2.67% to $2.78 trillion.
ETH/USD four-hour price chart. Source: Cointelegraph/TradingView
Several factors are contributing to ETH price losses, including:
Trump’s tariff tensions and its overall impact on risk-on markets.
Massive long liquidations in the crypto market.
Bearish technicals.
Trump’s 25% automotive tariffs spook ETH investorsOne major macroeconomic force impacting Ether’s price is US President Donald Trump’s renewed tariff wars, which have caused tensions among investors.
Key takeaways:
On March 26, 2025, President Trump announced a 25% tariff on all cars and light trucks imported into the US, set to take effect on April 3.
Market participants are concerned this might trigger another sell-off in cryptocurrencies, pushing prices lower.
The 25% tariff on automobile imports targets major trading partners like Mexico, Canada, Japan, and Germany.
While Trump touts this as a way to bolster the American automotive industry, the immediate fallout is likely to rattle global markets, particularly risk-on assets like ETH.
When Trump imposed tariffs on Canada, Mexico, and China in early March, ETH dropped from $3,400 to $2,100 in less than 72 hours before partially recovering.
Mexico President Claudia Sheinbaum has said that her administration is going to give a comprehensive response to the tariffs after April 2, The Kobeissi Letter reported, adding:
“Reciprocal tariffs on the reciprocal tariffs are coming.”Spooked by fears of a trade war and a potential US recession, investors are shifting away from volatile assets like ETH toward safer havens, driving its price down.
Long liquidations accelerate ETH downtrendEther’s tumble over the past 24 hours coincided with a wave of long liquidations that forced traders to exit their leveraged positions.
Key takeaways:
Over $97 million worth of ETH positions were wiped out in the last 24 hours, with long liquidations accounting for 91% of the total or $88.7 million.
ETH total liquidation chart. Source: CoinGlass
The sharp price drop triggered a cascade of forced sell-offs as traders betting on Ethereum’s price increase were liquidated.
Such liquidations accelerate price declines, exacerbating the downturn.
The broader crypto market also experienced a sharp deleveraging event, with total liquidations reaching $353 million across all assets.
Crypto market liquidations (24 hours). Source: CoinGlass
Related: Ethereum devs prepare final Pectra test before mainnet launch
ETH faces further declines toward $1,200Ether’s price technicals are also looking weaker, notably its prevailing bear flag pattern.
Key points:
A bear flag suggests a continuation of the bearish momentum.
A temporary consolidation (flag) formed near $2,200, resulting in a failed breakout.
ETH dropped below key support levels, confirming the bear flag breakdown.
ETH/USD daily chart. Source: Cointelegraph/TradingView
The target from the pattern suggests a potential decline toward $1,200, representing a 35% decline from the current level.
The relative strength index remains below the mid-line, underlining the downtrend.
ETH has “suffered more severe declines,” down over 50% from its three-year high of $4,100 reached on Dec. 16, 2024, said data provider CryptoQuant in its latest report, adding:
“This reflects weaker recovery momentum and higher volatility.”Top 5 cryptocurrencies: Percentage drawdown from all-time highs. Source: CryptoQuant
As earlier reported by Cointelegraph, the recent drawdown in Ether’s price reflected overly bearish expectations, but rising Ethereum network activity and decreasing supply on exchanges could set the stage for a recovery toward $2,500.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
