news 
What’s Next for ETH Amid the Bearish Trend Sparked by Trump’s Tariff Decisions?
The cryptocurrency market has been sent into a tailspin in recent days, with Ethereum (ETH) plummeting to $1,415 on Monday amidst a broader market bloodbath. Although ETH has recovered slightly and is currently trading at $1,505, its price was still down by 15% over the past 24 hours.
This sharp decline comes as the cryptocurrency market reacts negatively to the Trump administration’s intensified global tariff approach. Despite this bearish trend, data suggests that ETH may be due for a recovery, with whales’ average cost basis signaling potential rebound or further decline.
ETH’s Next Major Support
CryptoQuant’s analysis indicates that ETH’s next major support level is at $1,290, where the average cost basis of whales holding over 100,000 ETH sits. With the average cost basis for all Ethereum holders around $2,200, many are currently facing losses. However, CryptoQuant noted that ETH has shown resilience in the past, such as during the Terra-Luna crisis in June 2022 when it reached a low of $870 but quickly rebounded. This may indicate potential for recovery even in challenging market conditions.
Whale Activity and Market Behavior
As the asset’s price took a massive hit, Spot On Chain reported that an Ethereum ICO whale had deposited 7,000 ETH, worth approximately $10.21 million, to Kraken. Despite the recent deposit, the whale still holds 23,070 ETH, worth around $34.5 million, and has been offloading tokens during sharp price declines. This activity may be bearish for its price in the short term.
Undervalued Market
On a positive note, IntoTheBlock has reported that Ether’s Market Value to Realized Value (MVRV) ratio has dropped to 0.87, representing its lowest point since December 2022. A low MVRV suggests potential for a price recovery as it reflects the possibility of accumulation among investors at discounted levels.
It is worth noting that this metric is not universally agreed upon, and some experts argue that it should be taken with caution due to market manipulation risks.
Source: https://cryptopotato.com/whats-next-for-eth-amid-the-bearish-trend-sparked-by-trumps-tariff-decisions/
