The crypto markets are once again under pressure, and this time, it is not just about Bitcoin or broader macroeconomic trends. The latest blow comes in the form of renewed tariff tensions between global powers, which has sparked a wave of market volatility. One of the hardest-hit cryptocurrencies appears to be Ethereum (ETH), as analysts warn of a possible $100 million liquidation event if prices slide just a bit further. Ether bulls now face a critical moment.
Current Market Snapshot
At the time of writing on April 7, 2025:
- Ether (ETH) price: $3,260
- 24-hour price change: Down 3.5%
- Liquidation trigger zone: ~$2,780
- Market capitalization: $392 billion
- Open interest in futures: $6.7 billion
The renewed pressure comes as traders remain on edge following a sharp escalation in trade tensions between the U.S. and China.
U.S.-China Tariffs Stir Market Volatility
Background on the Tariff News
Over the weekend, China confirmed it would impose 34% retaliatory tariffs on a wide range of American goods. This announcement followed the U.S.’s decision to raise tariffs on $300 billion worth of Chinese imports. The move has had a chilling effect across financial markets, including the crypto sector.
Impact on Ethereum
Ether, which had been consolidating above $3,300, quickly lost support and fell to as low as $3,200 in early Asian trading hours. This price action has put a large number of leveraged long positions at risk.
Risk of Liquidation: What the Data Shows
$100M in Longs at Risk
According to data from Coinglass:
- If ETH drops another 15% from its current level, it could lead to forced liquidations worth over $100 million.
- The critical liquidation threshold lies near $2,780, which aligns with key support zones.
- A cascade of liquidations could further accelerate ETH’s fall.
Open Interest and Funding Rates
- ETH Open Interest: $6.7 billion, mostly long
- Funding rate trend: Neutral to slightly negative, signaling a decline in bullish sentiment
- Recent liquidations (past 24 hours): ~$37 million in long positions
These stats reflect how closely tied Ether’s short-term outlook is to macroeconomic triggers like tariff announcements.
Technical Outlook
Key Support and Resistance Levels
- Immediate resistance: $3,350
- Immediate support: $3,150
- Major support zone: $2,800 – $2,780 (critical liquidation trigger)
RSI and MACD Indicators
- RSI (Relative Strength Index): 42, approaching oversold territory
- MACD (Moving Average Convergence Divergence): Bearish crossover confirmed
This suggests momentum is favoring bears in the short term, although the oversold RSI may provide a potential bounce.
Broader Crypto Market Trends
Bitcoin (BTC) Holds Better
- BTC price: $83,500 (down 0.7%)
- BTC dominance: 52.8%
While ETH is showing vulnerability, Bitcoin has remained relatively stable, further emphasizing a divergence in investor sentiment.
Altcoins Join the Slide
- Solana (SOL): Down 4.9% at $172
- Cardano (ADA): Down 5.1% at $0.68
- Avalanche (AVAX): Down 6.3% at $49.50
This broad sell-off among altcoins adds additional downside pressure to ETH.
Institutional and Whale Activity
- Whale wallet movement: A noticeable increase in ETH transfers to exchanges, suggesting possible intent to sell
- Derivatives desk behavior: Institutions are reducing long exposure in ETH futures
The combination of institutional pullback and whale selling is not a good sign for immediate bullish hopes.
Analyst Opinions
Market Reactions
- Alex Kruger (Macro analyst): “Tariff tensions are a major macro headwind. ETH could easily revisit $2,800 if sentiment worsens.”
- Credible Crypto (Chartist): “We’re at the edge. If we lose $3,150, prepare for a fast trip to $2,750.”
- Glassnode Insights: “Derivative metrics show extreme risk near $2,800 – a volatile zone.”
Conclusion: A Cautionary Time for Ether Bulls
The Ethereum market is entering a highly sensitive phase. While long-term fundamentals remain strong, the short-term price outlook is clouded by escalating geopolitical tensions. A move below $2,800 could trigger a cascade of liquidations totaling over $100 million, leading to increased volatility.
What to Watch Next
- Trade war headlines
- ETH price action near $3,150 support
- On-chain activity and exchange flows
For now, Ether bulls must tread carefully, and traders should consider managing risk proactively. While this could be a temporary dip, the next few days will be crucial in determining whether ETH bounces or dives deeper.