Ethereum suffers its largest 24-hour loss in four years amid the recent crypto market downturn triggered by Donald Trump’s looming trade wars.
Ethereum (ETH) holders have not had it easy amid the altcoin’s underperformance in the past two years. Now, just when things were starting to look up with the community trying to rally around the asset, macroeconomic factors have sent the market into a free fall.
Ethereum Takes a Dive
Ethereum has recorded its most significant 24-hour loss in nearly four years. Specifically, the asset fell almost 27% to trade just above the $2,100 price, the largest 24-hour decline it has seen since May 19, 2021.
Even after paring some of these losses to trade around the $2,400 price point at the time of writing on Monday, February 3, the asset is still down 20% on the day.
Meanwhile, Ethereum is not the only asset to have posted significant losses in the past 24 hours. At the time of writing, Bitcoin, XRP, Solana, and Dogecoin are down 6%, 22%, 8%, and 23%, respectively.
Top crypto assets in the red Source CoinMarketCap
Indeed, one analyst has suggested that the crypto market has seen its largest 24-hour liquidation event due to the rout.
Specifically, over $2.22 billion in trader losses have been recorded in the past 24 hours, with the most losses, about $605 million, seen by ETH long traders, per CoinGlass data at the time of writing.
The market dump comes as investors rapidly reduce their exposure to risk assets following a major decision from the Trump administration. For context, President Donald Trump has sparked significant economic uncertainty by imposing significant tariffs on major U.S. trade partners.
Can Ethereum Bounce Back?
Interestingly, amid the market crash, some analysts appear confident that ETH will rebound.
Reacting to the ETH dump, prominent trader IncomeSharks described it as “a rare opportunity” with upside targets above the $3,000 price point. Notably, the asset previously found momentum to surge to $4,000 in December 2024 at the $2,100 price level.
$ETH – Can’t pass up buying one of the largest liquidation events we’ve seen. A bigger sell off than expected but that’s a rare opportunity to bid. pic.twitter.com/VL7TbIbTca
— IncomeSharks (@IncomeSharks) February 3, 2025
Meanwhile, Max Schwartzman, CEO of the crypto education platform BecauseBitcoin, asserted that patient ETH holders would be rewarded.
Largest liquidation event on $ETH in the past 2+ years with the most negative funding… most comparable event to this was March 2020 Covid Crash.
I believe those that stick around will be rewarded. Most will not stick around. Defining moment for many. We all go through it. pic.twitter.com/hmZRGuGJAo
— Max (@MaxBecauseBTC) February 3, 2025
At the same time, Into The Cryptoverse founder Benjamin Cowen has highlighted that ETH has reached a major long-term support level, citing the logarithmic regression trendline, which models the price action of an asset that has historically seen exponential growth.
According to Cowen, the asset has reached the lower regression trendline, typically serving as long-term support.
After all these years, #ETH has finally entered into the lower logarithmic regression trend line 🥲 pic.twitter.com/AHGF8f58n5
— Benjamin Cowen (@intocryptoverse) February 3, 2025
Indeed, the last time ETH experienced an intraday decline of this scale was in the middle of a bull market that saw it rally to highs near the $5,000 price point in Q4 of the same year. However, whether the asset will be able to replicate this feat remains to be seen.
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