Ethereum struggles before Trump's tariffs
Ethereum fell 7% as Trump announced taxes on EU goods.
The fall indicates a growing link between cryptocurrencies and macroeconomics.
ETH may fall below $1,500 if descending channel support fails.
After US President Donald Trump threatened a 25% tax on EU goods, Ethereum (ETH) fell 7% in 24 hours on Wednesday.
Ethereum struggles before Trump's tariffs
During his second term's first cabinet meeting, Trump announced a 25% tax on European goods.
"We have made a decision, we'll be announcing it very soon and it'll be 25% generally speaking, and that will be on cars and all other things," he added.
The duty on Canada and Mexico may be delayed until April 2, he said.
After the announcement, ETH fell 7% in 24 hours and 15% weekly.
ETH investors have capitulated to reduce losses due to price depreciation and worries of additional decline.
Investors lost $500 million in the previous three days, according to Network Realized Profit/Loss.
According to Coinglass, Ethereum ETFs saw $50.1 million in net outflows on Tuesday, their fourth straight day of negative flows.
The crypto market fell, including Bitcoin (BTC), XRP, and Solana (SOL).
Since Monday, when Trump initially proposed tariff restart on Canada and Mexico, ETH and the crypto market have lost ground, highlighting their growing sensitivity to macroeconomic circumstances and traditional markets.
Trump's comments cut the S&P 500's market valuation by $500 billion.
Coinglass data shows Ethereum futures liquidations of $116.28 million in 24 hours. Long liquidations totaled $86.81 million and short liquidations $29.47 million.
On Tuesday, ETH bounced off the bottom edge of a falling channel and rejected at $2,560.
The leading altcoin is trying channel support again today. ETH might fall below $1,500 if it closes below the declining channel and fails to retain $2,200.
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