The cryptocurrency market took a significant hit following U.S. President Donald Trump’s latest tariff announcement, with Ethereum (ETH) among the hardest-hit digital assets. The move, which imposes a 10% tariff on most countries and steeper levies on China (34%), the EU (20%), and Japan (24%), has led to a sharp decline in investor sentiment across financial markets, including crypto.
Ethereum Drops Below Key Support Levels
Amidst this turmoil, Ethereum witnessed a steep decline of over 4.50%, dropping near the crucial $1,800 level at press time. Analysts warn that this price point serves as a major inflection point, with further downside potential if ETH fails to reclaim support levels.
Technical indicators suggest that ETH is on the verge of a significant downturn. A bearish cup and handle pattern has formed on the daily chart, signaling a continuation of the downtrend. If Ethereum closes below $1,770, historical price action suggests a sell-off could push the asset down by another 15%, potentially revisiting the $1,500 support zone.
Additionally, ETH is currently trading below the 200-day Exponential Moving Average (EMA), further confirming bearish sentiment in the market.
Whale Accumulation Amid Market Dip
Despite the broader bearish sentiment, some large investors, or “whales,” appear to be taking advantage of the price drop. Blockchain analytics firm Lookonchain reported that a crypto whale withdrew 2,774 ETH (worth $5.27 million) from Binance. In total, the same entity has accumulated over 16,415 ETH (valued at approximately $43.90 million) at an average price of $2,676, indicating a strong belief in Ethereum’s long-term potential despite the current market conditions.
A whale withdrew another 2,774 $ETH($5.27M) from #Binance 11 hours ago.
— Lookonchain (@lookonchain) April 3, 2025
Since Feb 11, 2024, this whale has withdrawn a total of 16,415 $ETH($43.9M) from #Binance at an average price of $2,676, and is currently sitting on a loss of over $13M!https://t.co/1UrVpTOyMI pic.twitter.com/JuMarghDgO
Traders Bet $330 Million on Ethereum’s Downtrend
Market data from Coinglass highlights a notable increase in leveraged short positions against ETH. The Exchange Liquidation Map shows traders have accumulated $330 million in short positions around the $1,848 mark. Additionally, $115 million worth of long positions at $1,783 suggest that traders are highly leveraged, increasing the risk of liquidations should price volatility persist.
As Ethereum grapples with macroeconomic pressures and bearish market trends, investors will closely watch whether ETH can hold its key support levels or succumb to further selling pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
