Ethereum’s price experienced a notable decline, dropping to $1,560 from an intraday high of $1,700, as recession fears intensified. Other major cryptocurrencies, including Zcash, Tezos, and EOS, also saw declines. This downturn coincided with significant losses in the stock market, where the Dow Jones and Nasdaq 100 indices fell by 950 and 650 points, respectively.
The market’s apprehension stems from ongoing trade tensions and the potential for an economic downturn. Despite President Donald Trump’s recent decision to pause certain tariffs, concerns persist. Mark Zandi, Chief Economist at Moody’s, estimates a 60% probability of the U.S. entering a recession this year, citing the escalating trade war between the U.S. and China. Both nations have imposed substantial tariffs on each other’s goods, with U.S. tariffs on Chinese imports reaching 125% and Chinese tariffs on U.S. exports at 85%. Additionally, the U.S. maintains a 10% tariff on goods from other countries, with specific sectors like automobiles, steel, and aluminum facing tariffs of 25%. Zandi estimates the effective U.S. tariff rate at 20%, significantly higher than that of most other countries, according to crypto.news.
Technical analysis indicates that Ethereum remains in a downtrend, having formed a triple-top pattern at $4,065 and breaking below key support levels. Indicators such as the Relative Strength Index and the MACD suggest further potential declines, with sellers possibly targeting the psychological level of $1,000.
