Ether Price Drops Amid Market Volatility, Trade War Fears

Ether (ETH) is experiencing sharp declines, testing levels last seen in November 2023. The cryptocurrency has dropped 15% in the past 24 hours, dragging the CoinDesk 20 index down by 16%, according to CoinDesk Indices.

Market volatility continues as concerns over a potential U.S.-China trade war, inflation, and stock market weakness weigh on investor sentiment. ETH has underperformed Bitcoin (BTC) in recent months, reflecting weaker institutional demand and a broader risk-off environment.

According to CoinGlass, nearly $165 million in ETH long positions were liquidated in the past 12 hours, highlighting increased selling pressure. Additionally, Polymarket bettors are pricing in a 76% probability of ETH hitting $1,900 by month-end. Meanwhile, Ether exchange-traded funds (ETFs) have seen significant outflows, with investors pulling $335 million last week, per SoSoValue data.

The ongoing sell-off signals heightened uncertainty in the crypto market, as macroeconomic factors continue to impact sentiment. Traders remain cautious amid market fluctuations, closely watching price movements for potential recovery signals.