By Chris Hollingworth 
Ether (ETH) faced a significant decline of over 5% in the past 24 hours, settling around $1,900 on March 28. This downward movement in Ether’s price was in line with the broader cryptocurrency market trend, which saw the total market capitalization drop by approximately 2.67% to $2.78 trillion.
Several factors contributed to the decline in ETH price, including tensions surrounding tariffs imposed by former US President Donald Trump, substantial long liquidations in the crypto market, and bearish technical indicators.
One of the key macroeconomic factors influencing Ether’s price was President Trump’s announcement of a 25% tariff on all car and light truck imports into the US, scheduled to come into effect on April 3. This move raised concerns among market participants about the potential impact on cryptocurrencies, leading to a possible sell-off and driving prices lower.
The targeted countries for the automotive import tariffs, including Mexico, Canada, Japan, and Germany, could further escalate global market instability, particularly affecting risk-on assets like ETH.
The recent wave of long liquidations in the market, resulting in over $97 million worth of ETH positions being wiped out in the last 24 hours, added pressure on Ether’s price. Long liquidations accounted for the majority of these liquidations, totaling $88.7 million.
The technical analysis for Ether also painted a bearish picture, with the prevailing bear flag pattern indicating a continuation of the downward momentum. The failure of a breakout near $2,200 and the breach of key support levels further confirmed the bearish trend, potentially leading ETH towards $1,200, representing a 35% decline from the current level.
Despite the recent price declines, there are indications that rising Ethereum network activity and decreasing supply on exchanges could pave the way for a potential recovery towards $2,500. However, the market remains volatile, and investors are closely monitoring developments that could impact ETH’s price movements in the near future.
