{"id":29796,"date":"2025-02-03T19:14:47","date_gmt":"2025-02-04T00:14:47","guid":{"rendered":"https:\/\/leadingcryptonews.com\/tests-2500-support-level-amid-international-trade-tensions\/"},"modified":"2025-02-03T19:14:47","modified_gmt":"2025-02-04T00:14:47","slug":"tests-2500-support-level-amid-international-trade-tensions","status":"publish","type":"post","link":"https:\/\/leadingcryptonews.com\/tests-2500-support-level-amid-international-trade-tensions\/","title":{"rendered":"Tests $2,500 Support Level Amid International Trade Tensions"},"content":{"rendered":"
\n<\/p>\n
Ethereum\u2019s price has taken a sharp downturn, falling nearly 20% in the past 24 hours to trade around $2,500. The drop comes in response to President Donald Trump\u2019s announcement of new trade tariffs on Canada, Mexico, and China, which has sparked broader market uncertainty.<\/p>\n
The price movement represents one of the most severe sell-offs in recent years for the leading alternative cryptocurrency, pushing it below the critical $3,000 support level. The decline coincides with a broader market reaction to Trump\u2019s decision to implement 25% tariffs on imports from Canada and Mexico, along with 10% tariffs on Chinese products.<\/p>\n
Data from Coinglass reveals that panic selling among large holders has played a crucial role in the market downturn. Whale activity has triggered a cascade of liquidations, resulting in the largest Ethereum liquidation event in over two years.<\/p>\n
The scale of the liquidation event has been particularly notable, with $475.72 million liquidated from long positions and an additional $127.78 million from short positions over the past 24 hours. The futures market has also seen a 27% reduction in open interest, dropping to $23.36 billion.<\/p>\n
Despite the market turbulence, some analysts maintain an optimistic outlook. Crypto trader MaxBecauseBTC, who has 66,000 followers on X, compared the current situation to the March 2020 COVID crash, suggesting that \u201cthose that stick around will be rewarded.\u201d<\/p>\n
\nLargest liquidation event on $ETH in the past 2+ years with the most negative funding\u2026 most comparable event to this was March 2020 Covid Crash. <\/p>\n
I believe those that stick around will be rewarded. Most will not stick around. Defining moment for many. We all go through it. pic.twitter.com\/hmZRGuGJAo<\/p>\n
\u2014 Max (@MaxBecauseBTC) February 3, 2025<\/p>\n<\/blockquote>\n
Felix Hartmann, founder of Hartmann Capital, attributes the downturn to \u201cforced selling\u201d and suggests current prices may not reflect true market value. This sentiment is echoed by Mechanism Capital partner Andrew Kang, who indicates that Ethereum may be oversold and could recover to $2,700.<\/p>\n
The market reaction appears closely tied to developments in Asian financial markets. Hong Kong\u2019s Hang Seng index dropped 2.07%, while Japan\u2019s Nikkei 225 index fell 2.27%. South Korea\u2019s KOSPI index experienced a 2.87% decline, and Taiwan\u2019s weighted index showed a 3.74% decrease.<\/p>\n
Amid the market turmoil, some positive signals have emerged. On-chain data shows that investors have withdrawn $326.7 million worth of ETH from exchanges over the past three days, suggesting accumulation during the dip. This behavior typically indicates that some investors view the current prices as a buying opportunity.<\/p>\n