Ethereum has fallen below $2,100, hitting its lowest level since December 2023 as Trump tariff concerns rattle markets.
The cryptocurrency is down 15% in the past 24 hours, trading at $2,063, according to crypto.news price data. The drop follows a short-lived rally after Donald Trump’s March 2 announcement of a U.S. Crypto Strategic Reserve, which briefly pushed ETH above $2,500.
However, Trump’s confirmation that fresh tariffs on China, Canada, and Mexico will go into force on March 4 has caused market sentiment to shift, raising concerns about broader economic instability.
The announcement caused Ethereum’s (ETH) price to plummet, dropping below its pre-pump level of about $2190. Decentralized finance activity and the Ethereum futures market both indicate Ethereum’s declining momentum. Open interest in ETH futures has dropped by 10% over the last day, according to Coinglass data.
DeFi TVL, on the other hand, has hit the lowest this year, declining from $71 billion in January to $48.1 billion as of March 4. Since March 1, there has been $109 million in stablecoin outflows, indicating a decrease in liquidity, as shown by DeFiLlama data.
Ethereum whales appear to be cutting back on their holdings as well. Lookonchain reported a significant transaction in which 30,000 Ethereum, about $68 million, was offloaded to FalconX and Galaxy Digital on March 4 from a wallet connected to Genesis.
Ethereum is displaying a higher risk of decline on the technical front. The RSI is approaching oversold at 34, suggesting reduced buying pressure. Moving averages indicate a strong downtrend, with ETH trading below key levels such as the 10-day EMA at $2,338 and the 50-day SMA at $2,852.
Although oscillators display conflicting indications, negative momentum and MACD readings imply that bearish sentiment is growing. The closest support is at $2,069, with resistance at $2,163 and $2,321.Ethereum may experience more drops in the coming days if the bearish trend persists.
Some upcoming events could provide a turning point. The Ethereum Pectra upgrade, set for April, is expected to enhance scalability and staking flexibility, possibly attracting more network activity. Investors are also keeping a close eye on the first White House Crypto Summit on March 7, which may provide further details about Trump’s plans for his crypto strategic reserve.