🌎 Ethereum Price Drops Below $2,100

Ethereum Price Plummets Below $2,100 Amid Trump Tariff Concerns

Ethereum’s price has fallen below $2,100, marking its lowest level since December 2023. The cryptocurrency has experienced a 15% decline in the past 24 hours, trading at $2,063. This downward trend follows a brief rally after Donald Trump’s announcement of a U.S. Crypto Strategic Reserve, which temporarily pushed Ethereum’s price above $2,500.

Market Sentiment Shifts Amid Tariff Concerns

Trump’s confirmation of fresh tariffs on China, Canada, and Mexico, set to go into force on March 4, has caused market sentiment to shift. This development has raised concerns about broader economic instability, leading to a decline in Ethereum’s price. The cryptocurrency’s price has dropped below its pre-pump level of about $2,190.

Declining Momentum in Ethereum Futures Market and DeFi Activity

Decentralized finance (DeFi) activity and the Ethereum futures market both indicate declining momentum for the cryptocurrency. Open interest in ETH futures has dropped by 10% over the last day. DeFi Total Value Locked (TVL) has hit its lowest level this year, declining from $71 billion in January to $48.1 billion as of March 4. Additionally, there has been $109 million in stablecoin outflows since March 1, indicating a decrease in liquidity.

Ethereum Whales Cutting Back on Holdings

Ethereum whales appear to be reducing their holdings. A significant transaction was reported, where 30,000 Ethereum (approximately $68 million) was offloaded to FalconX and Galaxy Digital on March 4 from a wallet connected to Genesis. Another whale wallet with over 110K ETH ($235M) has been selling ETH, transferring 30,000 ETH ($68.55M) to FalconX and Galaxy Digital and receiving 7.76M USDC from FalconX.

Ethereum Technical Analysis

Ethereum is displaying a higher risk of decline on the technical front. The Relative Strength Index (RSI) is approaching oversold at 34, suggesting reduced buying pressure. Moving averages indicate a strong downtrend, with ETH trading below key levels such as the 10-day Exponential Moving Average (EMA) at $2,338 and the 50-day Simple Moving Average (SMA) at $2,852. Although oscillators display conflicting indications, negative momentum and Moving Average Convergence Divergence (MACD) readings imply that bearish sentiment is growing.

Upcoming Events to Watch

Some upcoming events could provide a turning point for Ethereum’s price. The Ethereum Pectra upgrade, set for April, is expected to enhance scalability and staking flexibility, possibly attracting more network activity. Investors are also keeping a close eye on the first White House Crypto Summit on March 7, which may provide further details about Trump’s plans for his crypto strategic reserve.

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