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 US-based entrepreneur and Bitcoin Advocate. He is the founding member of MicroStrategy (now Strategy), a development company that focuses on cloud-based services. He urges investors to invest in Bitcoin and shares new updates on Bitcoin on his X account.   His firm, Strategy, now makes Bitcoin its primary reserve and stockpiles Bitcoin frequently. He has attended several events like the Bitcoin Conference 2025 to advocate for Bitcoin and its future growth.   Quick Facts   Full Name Michael J. Saylor Birth 04-02-1965 in Lincoln, Nebraska Nationality American Education BS from MIT Known for Bitcoin Advocacy   Michael Saylor – Career Timeline 1996: Named "Washington High-Tech Entrepreneur of the Year"   1998: MicroStrategy went public through an IPO   2021: Became a top Bitcoin advocate and urged its adoption.   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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