Ether (ETH) has taken a nosedive, dropping 15% in the last 24 hours and hitting levels not seen since November 2023. This dramatic plunge has investors on edge. The recent volatility is largely tied to the escalating trade war threats from U.S. President Trump. It's like a rollercoaster ride, but not the fun kind!
Ether (ETH) has plunged 15% in 24 hours, reaching its lowest levels since November 2023, leaving investors anxious.
As ETH tumbles, the CoinDesk 20 index also shows a decline, down 16%. This downturn reflects a broader market slump, making everyone a bit jittery. Investors are feeling the pressure, especially after nearly $165 million in ETH long positions got liquidated in just 12 hours. That's a massive amount, and it emphasizes the heightened risk aversion in the market. When long positions get wiped out, it usually leads to even more downward pressure on prices.
Investor sentiment isn't too rosy right now. Many are cautiously optimistic, with some betting on Polymarket predicting a 76% chance of ETH bouncing back to $1900 by the end of this month. But with macroeconomic fears swirling around, it's hard to tell if those predictions are grounded or just wishful thinking. Confidence is shaky, thanks to recent price swings.
On top of all this, Ether ETFs saw an outflow of $335 million last week, signaling that investors are losing interest in them. This could further impact market sentiment and influence institutional investment strategies. The weak performance of ETH ETFs doesn't help either, making the situation feel even more precarious.
Macro headwinds like inflation fears and a weak stock market aren't doing ETH any favors. Investors are feeling the pinch, and their risk appetite is dwindling. With ETH underperforming compared to Bitcoin (BTC), the bearish sentiment runs deep.
It's a tough time for crypto enthusiasts, but as always, the market can turn on a dime. Let's hope for better days ahead!