
Why Is Ethereum (ETH) Falling Without Major Liquidations? ITB Breaks It Down
The price of ether (ETH) has been steadily declining for months, with the recent plunge taking a turn for the worse. This sudden downturn has sparked curiosity among investors as to why massive liquidations have not occurred despite the significant drop in value. In an effort to shed some light on this situation, IntoTheBlock has analyzed the data and is now sharing its findings.
One of the primary factors contributing to the lack of major liquidations is the considerable decline in high-risk loans across lending platforms. It appears that investors are adopting a more risk-averse approach due to macroeconomic concerns. This newfound caution is likely driven by apprehension over potential global tariff tensions. The United States has been plagued by economic uncertainty for some time now, following President Donald Trump’s announcement of tariffs against major trade partners such as China, Canada, and Mexico.
The cryptocurrency market responded swiftly to the news, with the overall capitalization falling by at least 11% within a 24-hour period. Following this, roughly $400 billion in value was erased from the market. Despite this turbulence, ETH has plummeted from a peak of over $2,800 in early February to approximately $1,760. This decline is considerable, and investors are understandably cautious.
As we can see from CoinMarketCap data, ETH has been struggling recently. Just this week alone, it fell by around 13% after failing to hold onto the $2,000 support level. The current price of roughly $1,900 marks a low not seen since 2023.
Source: https://cryptopotato.com/why-is-ethereum-eth-falling-without-major-liquidations-itb-breaks-it-down/