Ethereum Plunges as Market Downturn Deepens
Ethereum (ETH) has suffered a significant drop, breaking below the crucial $2,000 level for the first time since late 2023. The broader cryptocurrency market is facing intense selling pressure, and ETH’s inability to hold above this key support level signals further downside risks. Despite recent bullish news, such as the U.S. government’s announcement of a strategic Bitcoin reserve, investor sentiment remains firmly bearish.
Economic Policies Add to Market Anxiety
Much of the recent market uncertainty stems from the Trump administration’s economic stance, which includes aggressive budget cuts and trade policies. While these measures are aimed at strengthening the economy in the long run, analysts agree that they could trigger a near-term recession. The Federal Reserve has hinted at potential rate cuts, but any meaningful liquidity boost remains unlikely in the immediate future.
Ethereum’s Path Forward Looks Uncertain
With ETH losing its grip on key moving averages, the next major support level sits around $1,500, the lows seen in mid-2023. Analysts warn that without strong buying pressure, Ethereum could face prolonged downward momentum, making a recovery above $2,000 increasingly difficult in the short term.
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