Why is Ethereum (ETH) price down today?

Ether has dropped by over 14.30% in the last 24 hours to reach around $2,330 on Feb. 25, its lowest point since the month’s beginning.The ETH price downturn comes amid several negative fundamentals, such as:US President Donald Trump’s renewed tariff threats.Largest crypto market liquidation since the Feb. 3 market rout.Weakening technicals that put ETH price at risk of falling below $2,000. Trump’s latest tariff threats dampen risk mood Ethereum is down today as investors react to renewed trade tensions under President Trump.What to know:On Feb. 24, Trump confirmed that sweeping tariffs on Canada and Mexico would take effect next week, ending a temporary pause.The announcement follows his Feb. 1 executive order imposing 25% tariffs on Mexican and Canadian goods, with an additional 10% duty on Canadian energy.These tariffs were initially delayed after diplomatic talks with Mexico and Canada.Markets have turned risk-averse, mirroring the downside reaction seen on Feb. 3 when Trump first threatened tariffs on Canada, Mexico, and China.Stocks and cryptocurrencies like Ethereum have declined as a result of renewed trade tensions.Meanwhile, gold has surged 12% this year as investors seek safer assets.But Fed officials have reiterated no urgency to cut interest rates.Higher interest rates and trade uncertainty are adding macroeconomic pressure on risk assets like Ethereum.Over $1.34 billion crypto positions liquidatedEthereum’s price decline coincides with the crypto market’s highest liquidations since the Feb. 3 rout.Key takeaways:In the past 24 hours, $1.34 billion in crypto liquidations occurred. Long positions accounted for $1.25 billion of total liquidations, significantly outpacing short liquidations at $87.09 million.Ethereum liquidations totaled $294.12 million, with a majority of them being long positions.Similar liquidation trends were observed on Feb. 3, when Ethereum dropped due to Trump’s tariffs and leverage washouts.High liquidation volumes indicate excessive leverage and sudden market moves, contributing to Ethereum's decline. Traders getting liquidated en masse leads to forced selling, amplifying price drops in ETH and other crypto assets. Ethereum risks another 20% dropEther price has entered the breakdown stage of its prevailing bear pennant pattern, signaling further downside in the days and weeks ahead.Key points:On Feb. 23, Ethereum broke below the lower trendline of its bear pennant pattern.Such a move, if accompanied by a rise in volumes, hints at a potential breakdown.As a technical rule, a bear pennant breakdown target is measured after adding the previous downtrend’s height to the breakdown point.Applying the same rule on Ether brings its downside target to $1,945, down about 20% from the current price levels.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.