Ethereum Prices Plummet Below $2K Despite Trump Reserve Announcement
ast 24 hours, ETH has dropped below the $2,000 mark and caused the liquidation of $209 million worth of trades. The recent volatility in Ethereum’s price has left investors on edge, especially after the initial excitement following Trump’s announcement of its inclusion in the US Strategic Reserve.
While the news initially sparked a more than 16% rally in Ethereum’s price, the bullish momentum was short-lived. In the last 24 hours, the altcoin plummeted by over 15%, leading to the liquidation of thousands of ETH trades. This sudden drop has erased all the gains made in the second half of 2024, bringing ETH back to levels last seen in November 2023.
The decline in Ethereum’s price can be attributed to a variety of factors, including weak investor sentiment, reduced institutional demand, market volatility, and trade uncertainty. These elements have dampened risk appetite and contributed to the fall in Ethereum’s open interest by 10.8% to 8.8 billion.
As Ethereum struggles to find support above the critical $2,000 level, the possibility of a further downtrend looms. A break below this key level could trigger a significant decline, pushing ETH towards $1,540, $1,000, and potentially even as low as $174. Technical analysis indicates a double-top pattern on the weekly chart, with the $2,000 level serving as the neckline. A breakdown from this pattern could exacerbate the downward pressure on Ethereum’s price.
Despite the current price volatility, Ethereum continues to hold above the $2,000 support level at the time of writing. However, the ongoing battle to maintain this support level underscores the uncertainty surrounding Ethereum’s price trajectory in the near future. Investors are advised to closely monitor market developments and be prepared for further fluctuations in Ethereum’s price.
In conclusion, the recent price crash below $2,000 highlights the volatile nature of the cryptocurrency market. While Trump’s announcement initially fueled optimism among investors, the subsequent drop in Ethereum’s price underscores the challenges and uncertainties facing the cryptocurrency sector. As Ethereum continues to navigate these turbulent waters, investors should exercise caution and stay informed about market trends to make well-informed investment decisions.
