The price of ether (ETH) has been declining for months, with a recent plunge worsening the situation. However, the market intelligence firm IntoTheBlock noted that the latest drop hasn’t resulted in massive liquidations, unlike previous events. According to a tweet from IntoTheBlock, ETH liquidations have remained moderate, even with the cryptocurrency reaching its lowest point in over a year.
**ETH Is Dipping Without Major Liquidations**
IntoTheBlock attributes the moderate liquidations to a noticeable decrease in high-risk loans across lending platforms. Investors are adopting a more cautious approach, likely due to macroeconomic concerns, including potential global tariff tensions. The United States has been facing economic uncertainty, especially after President Donald Trump imposed tariffs on major trade partners such as China, Canada, and Mexico.
Some industry analysts suggest that these trade tariffs could positively impact cryptocurrencies, particularly bitcoin (BTC), in the long run. However, since Trump’s announcements, the market has experienced significant volatility. On the day the tariffs were imposed, about $400 billion was wiped off the market, with overall capitalization dropping by at least 11% within 24 hours.
According to CoinMarketCap data, ETH has plummeted from $2,800 to around $1,760 since early February. The second-largest crypto asset has struggled, dropping roughly 13% this week after failing to maintain a support level above $2,000. As of now, it is trading at levels not seen since 2023, valued at $1,900 at the time of writing.
**ETH Price Outlook**
It was reported that ETH buyers have retreated, finding support at the $1,800 level. However, it remains uncertain whether ETH has reached a bottom and if this support will be strong enough to alleviate selling pressure and initiate a recovery. Currently, ether is about 60% down from its mid-December high of $3,990. Unfortunately, additional downward pressure could push the asset to $1,600. These scenarios, along with Ethereum’s underperformance compared to Bitcoin, have made investors cautious.
Meanwhile, IntoTheBlock discovered that some ETH holders view this dip as a buying opportunity, as evidenced by $1.8 billion worth of ETH leaving crypto exchanges last week, marking the highest weekly amount since December 2022.
**Twitter Text:** Despite Ethereum’s price dip, liquidations remain moderate as investors adopt cautious strategies. Some see the dip as a buying opportunity. #Ethereum #InvestSmart
