Massive Crypto Sell-Off: Why Ethereum Price Is Down Today?

The crypto market suffered a brutal crash over the weekend, wiping out $2.24 billion in just 24 hours. Ethereum (ETH) was hit the hardest, dropping below $3,000 and triggering over $600 million in liquidations. The massive sell-off was driven by growing global tensions over President Trump’s new trade tariffs, which have shaken investor confidence.

Ethereum led the liquidation wave, with over $609 million in positions wiped out, according to market data. Panic selling quickly spread across the DeFi sector, pulling down other major altcoins like Cardano (ADA) and Solana (SOL), which also saw sharp declines.

Will Crypto Prices Drop Further?

Analysts warn that if economic and political uncertainty continues, Ethereum and other cryptocurrencies could fall even more. Investors are now closely watching whether Bitcoin and Ethereum can hold key support levels or if another downturn is on the horizon.

Trade War Fuels Market Uncertainty

The main reason behind the sell-off is the escalating trade war between the U.S. and other nations. The U.S. recently imposed a 25% tariff on goods from Canada and Mexico, along with a 10% tariff on Chinese imports. In response, Canada has hit back with its own tariffs on U.S. products.

President Trump has also hinted at targeting the European Union and BRICS nations with tariffs if they move forward with plans to introduce a new currency. These tensions are fueling fears of inflation, delaying interest rate cuts, and adding to economic uncertainty – all of which are weighing heavily on the crypto market.

A strategy to wipe the “Greed” from the market?

The impact of this massive sell-off was felt the most on major crypto exchanges like Binance, which accounted for 36.8% of the liquidations. Other exchanges like OKX, Bybit, and Gate.IO also saw significant losses. The majority of liquidations (84%) came from long traders, who were betting on a market rebound. Instead, they faced massive losses.

As the market sentiment turns to “fear,” many investors are becoming cautious about their positions. Historically, fear in the market can signal a potential buying opportunity, but with the ongoing global tensions and economic uncertainty, it’s hard to predict what will happen next. 

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Analysts Weigh Current Sentiments

Peter Schiff, a well-known Bitcoin critic, highlighted  in his X post that the recent crypto market downturn is a sign of a “long crypto winter.” He pointed out Bitcoin’s 7% drop, trading above $93,000, and Ethereum’s sharp 33% plunge, falling to as low as $2,100. Schiff used the famous Punxsutawney Phil, the groundhog known for predicting the length of winter, to suggest that the crypto market is in for a prolonged downturn. 

Meanwhile, Bitcoin advocate Michael Saylor Michael Saylor   Michael Saylor is a co-founder of Strategy (formerly MicroStrategy). Before founding Microstrategy, he was a rocket scientist and studied aeronautics and astronautics at MIT on an Air Force scholarship. He dubs Bitcoin 'Digital Gold'.   He made some early investments in Bitcoin as soon as he realized it was going to be the next big thing in shaping decentralized finance from traditional finance. His firm's Strategy has made Bitcoin its primary treasury reserve.   Quick Facts Full Name Michael J. Saylor Birth 04-02-1965 in Lincoln, Nebraska Education BSc from MIT Marital Status To be updated / Unmarried Nationality American Net Worth $8.4B (Feb. 20205, Refer for realtime)   As per Forbes, Saylor bought another 17,732 bitcoins for $175 million in October 2020. Forbes covered Michael Saylor on its front page and called him "The Bitcoin Alchemist" as the latter's Net Worth hit a whopping $7.6B in January 2025.   Michael Saylor – Career Timeline 1983–1987: Studied Aeronautics & Astronautics and Science, Technology & Society at Massachusetts Institute of Technology (MIT). 1989: Co-founded Micro Strategy (Strategy). 1998: Micro Strategy IPO – Took Micro Strategy public on the NASDAQ at $12 per share. 2000: Accounting Scandal & Crash – Micro Strategy's stock plunged 62% in a day due to an accounting misstatement, wiping out billions in valuation. 2004–2019: Micro Strategy Rebuilds – Worked towards cloud-based analytics and AI-driven business intelligence, regaining stability. 2020: Bitcoin Strategy & Investment – Led Micro Strategy's $425M Bitcoin investment. He made it the first publicly traded company to adopt Bitcoin. 2021: Bitcoin Evangelism – Became one of Bitcoin’s most vocal advocates, encouraging corporations and institutions to adopt BTC and blockchain. 2022: Stepped down as CEO – Transitioned to Executive Chairman to focus entirely on Bitcoin strategy.   With a major focus on blockchain network growth, Saylor is considered one of the architects in shaping the growth of decentralized finance.   Useful Links to connect with Michael Saylor Platform Link to connect Micro Strategy (Strategy) Official Website MicroStrategy Michael Saylor’s YouTube Channel https://www.youtube.com/c/MichaelSaylor Hope.com (Bitcoin Education by Saylor) Bitcoin is Hope     msaylor@microstrategy.com EntrepreneurCrypto and Blockchain ExpertAuthor responded by urging people not to sell their Bitcoin. The crypto sell-off was sparked by macroeconomic concerns, leading to a significant drop in both Bitcoin and Ethereum, along with a nearly $360 billion drop in the market’s total value.

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