The recent announcements made by Donald Trump regarding tariffs have had a significant impact on the crypto market, leading to increased downward volatility. This has been particularly evident in the price of Ethereum (ETH), which dropped below the critical $2,000 mark. As a result, there was a surge in long liquidations, indicating a shift in market sentiment.
Various on-chain metrics for Ethereum also turned bearish in response to the market conditions, suggesting a decrease in accumulation. However, despite these challenges, analysts remain optimistic about a strong rebound in the price of ETH in the near future, particularly in anticipation of the upcoming crypto summit.
One notable development during this period of market turbulence is the decrease in whale pressure on Ethereum. Data from Coinglass shows equal trading activity as Ethereum remains below the $2,500 mark. In the past 24 hours, Ethereum saw a total liquidation of around $47.87 million, with buyers liquidating $28.1 million and sellers closing $19.7 million in short positions.
Key investors have taken advantage of the lower prices to accumulate Ethereum, especially in the lead-up to the White House Crypto Summit. There is particular interest in the activity of wallet addresses associated with Trump-endorsed World Liberty Financial (WLF). According to Arkham Intel, WLF’s wallet has tripled its Ether holdings in just one day, indicating a strong accumulation strategy.
Despite the decrease in whale activity, Ethereum price recovered towards $2,300 as it faced buying pressure. However, the price failed to surge further as bears defended the resistance level. At present, Ethereum is trading at $2,200, with a drop of over 0.9% in the last 24 hours.
Looking ahead, the ETH/USDT trading pair is facing resistance at $2,530, which could be a significant obstacle for buyers. If the price holds below the EMA20 trend line on the 1-hour chart, sellers may push it back down to $2,000. However, if the price manages to hold above $2,530, it could signal a potential increase to $2,935.
Overall, while the market conditions have been challenging for Ethereum, there is optimism among analysts for a recovery in the price of ETH, especially with the upcoming crypto summit on the horizon. Investors are advised to closely monitor the market dynamics and stay informed about any developments that could impact the price of Ethereum.
