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Ethereum plunges as Donald Trump’s trade war batters crypto markets

  • Ethereum leads fresh crypto selloff amid Trump’s trade war.
  • Trump’s insistence on tariffs dims hopes of avoiding a trade conflict.
  • Ethereum fell over 6% to its lowest level since March 2023.

Ethereum (ETH-USD), the second-largest cryptocurrency by market capitalization, spearheaded a renewed wave of selling across the digital asset landscape on Wednesday.

The downturn comes as US President Donald Trump doubled down on his trade war, insisting on enforcing 104% tariffs on numerous Chinese goods, further diminishing hopes that a prolonged and damaging trade conflict could be averted.

Ethereum tumbled more than 6% to reach its lowest intra-day level since March 2023 before partially recovering to trade at $1,432 as of 9:51 a.m. in Singapore.

Bitcoin (BTC-USD), the market’s bellwether cryptocurrency, also experienced a decline, dropping more than 3% before regaining some ground, underlining the broad-based nature of the market downturn.

Tariff uncertainty dampens sentiment: a broader market pullback

Trump and top administration officials signaled on Tuesday that the US was open to potential dealmaking that could reduce or eliminate the higher tariffs imposed on dozens of nations, creating a brief glimmer of optimism.

However, Asian stocks sank, and wider financial markets were once again roiled as the president intensified pressure on China.

This whiplash effect has left investors wary and contributed to the risk-off sentiment across asset classes.

“People have given up”: crypto recovery hopes fade

“It seems like people have given up on a major recovery in crypto in the first half of the year,” Sean McNulty, head of APAC derivatives at digital-asset prime brokerage FalconX, told Bloomberg, reflecting the growing pessimism among market participants.

McNulty noted a surge in put options activity, with investors buying downside protection for Ether and Solana overnight, signaling a defensive positioning.

He also added that the next key support level for Bitcoin is around $65,000, highlighting the potential for further price declines if the sell-off continues.

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