Donald Trump’s latest tariff measures targeting China and other nations caused a significant drop in Bitcoin and altcoins, although the markets partially recovered afterwards.
However, an analyst has warned that Ethereum (ETH) could face further decline if the tensions between the United States and China continue to escalate. Andrew Kang, co-founder of Mechanism Capital, has suggested that ETH could decrease to the range of $2,200-$2,400 if the trade dispute worsens. He also highlighted that the zone of $2,900-$3,000 might act as a short-term resistance level for Ethereum.
Meanwhile, some large investors took advantage of the market downturn. A well-known whale, who had successfully timed the bottom of Ethereum in August 2024 and holds over $1 billion in crypto assets, made another significant purchase of ETH.
Despite the recent turbulence, Ethereum has experienced a 5.4% recovery in the past 24 hours, with a trading price of $2,710 at the time of writing.