As Ethereum (ETH) experiences a significant drop , we're all watching closely for critical support and resistance levels. This price movement is not only important for ETH enthusiasts, but could have broader implications for the altcoin market. Why is Ethereum crashing? During the last couple of days, crypto markets experienced ...
As Ethereum (ETH) experiences a significant drop, we're all watching closely for critical support and resistance levels. This price movement is not only important for ETH enthusiasts, but could have broader implications for the altcoin market.
Why is Ethereum crashing?
During the last couple of days, crypto markets experienced a sell-off, driven mostly by Bitcoin's collapse to ~$92k (at the time of writing, Bitcoin has recovered to $95,531.71). This sudden nosedive had ripple affects in the altcoin market, and ETH's price dropped -17% in the past 24 hours, with a low of $2.3k.
The market movement began after Trump signed an order imposing tariffs on imports from Mexico, China, and Canada.
Some technical analysts shared that ETH is now testing an important support zone that needs to be held in the coming weeks to avoid further losses; suggesting that if Ethereum can stay about $2,750 it could trigger a rally.
Benjamin Cowen, crypto analyst, shared on X (formerly Twitter) that ETH's price is likely to bottom out once the Federal Reserve ends its Quantitative Tightening (QT) policy.
