Why is the price of Ethereum (ETH) declining today?

Ether (Eth) The price declined more than 11.75% in the last 24 hours up to $ 1,900. In the low intraday, cryptocurrency has traded $ 1,755, the lowest price since October 2023.

Many factors appear to contribute to ETH price losses, including:

• The fear of the US shrinkage and its overall impact on risk markets.

• Massive long liquid in the crypto market.

• Crypto loans that ETH -back as collateral risks facing extermination.

• Technical bearishes.

Ether price refused with risk assets

Continued dropping of Ether mirrors is a similar decline in the wider risk-on market due to undesirable macroeconomic conditions.

Basic Points:

• JPMorgan has raised the risk of the US withdrawal Up to 40% for 2025, out of 30%, citing US “extreme US” Donald Trump’s “extreme US” policy as a major risk factor.

• Goldman Sachs also raised the 12-month possibility of shrinking to 20%, from 15%.

• Earlier in March, Trump imposed 25% tariffs In all goods from Mexico and Canada, and 10% tariffs on Chinese imports.

• Canada and Mexico revealed the goals of imposing retaliation tariffs on US goods, increasing trade tensions and increasing concerns about a potential trade war.

• Meanwhile, China has been recorded by increasing tariffs on many US products and imposing export controls and investment restrictions on 25 US companies.

• These tariffs are expected to increase consumer prices and contribute to US inflation.

The fears of the US’s retreat affect the Ethereum and the crypto sector, noticeable:

• Ether, Bitcoin, and other leading rank of crypto assets are history that has refused periods of economic disturbance, for example, the Covid-19 Sell-off in March 2020.

• Until March 11, the 52-week relationship between the crypto market and the US Benchmark Index, the S&P 500 index, was 0.69.

• An ongoing positive touch increases the odds of a crypto market decline if US stocks continue to fall, especially as the trade war is still dragging.

• Bond entrepreneurs do not require a cutting rate before June, including CME data Showing 95% and 52.5% odds of a pause on the Fed march and possible meetings, respectively.

Bad defi loan adds ether sell-off pressure

A $ 74 million defi loan In the Sky Protocol, the collateralized with $ 130 million in ETH, almost -liquidate after the Ether price fell under the extermination level just above $ 1,900.

As happened:

• The borrower Added $ 34 million to ETH as collateral to prevent extermination.

• Returned $ 1.6 million in USDT from Binance, replaced it for Dai, and deposited in maker.

• Debt reduced to $ 73.1 million as ETH prices continue to decline.

• The extermination level remained at $ 1,836 per ETH, closer to the current ETH price of over $ 1,900.

• Almost $ 353 million in debt is tied to such loansRisk of extermination if the price of ETH drops 20% from it.

Long Liquidations Speed ​​the Eth Dowstrend

Ether’s collapse over the past 24 hours in conjunction with a wave of long avoiding entrepreneurs to exit their leveraged positions.

Key Takeaways:

• More than $ 240 million worth of ETH positions have been eliminated in the last 24 hours, with a long avoiding $ 196.27 million, or 82% of the total.

• The sharp price collapse triggers a cascade of forced sellers while entrepreneurs who bet Ethereum’s price increase are liquid.

• When long positions fail to maintain margin requirements, the exchanges of their holdings will automatically sell to cover the losses.

• Such fluids will accelerate price decline, aggravating the collapse.

• The wider crypto market also experienced a sharp deleveraging eventwith total fluids reaching $ 897.26 million throughout the owners.

Ether’s eyes further decline towards $ 1,700

From a technical point of view, the decline in Ether’s price is now part of the existing opposite-cup-and-handle (IC&H) pattern.

Basic Points:

• A temporary integration -with (handle) formed near $ 2,700, indicating a failed breakout attempt.

• ETH broke below the basic levels of support, proving the collapse of the IC&H, leading to more losses.

• The measured target transfer from the pattern suggests a potential decline to $ 1,700, which aligns with the support level with the dot.

• The 50-day EMA ($ 2,600) and 200-day EMA ($ 2,929) remain far above, strengthening the bearish sentiment.

Basic levels to watch:

• The price of ETH has been within a descending channel pattern since late February.

• On March 11, the ETH/USD pair increases after testing the lower channel trend as support.

• The said rebound took prices to the upper channel trend in recent history.

• If the fractal repetition, the next upside -up ETH target may be around $ 2,000, which is in line with the 0.236 Fibonacci Retracement Line.

• A reversal from current price levels can have an ETH test the IC & H Downside Target of $ 1,700.

This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.