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What’s Causing Ethereum (ETH) Price Drop Today?

gisthub Mar 28, 2025
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Ether (ETH) dropped by over 5% in the last 24 hours, reaching around $1,900 on March 28. This decline reflects broader bearish sentiment in the cryptocurrency market, which saw a total market capitalization drop by 2.67% to $2.78 trillion.

Several factors are driving ETH’s price decline, including:

  • Tariff Uncertainty: Trump’s trade policies are unsettling risk-on markets.
  • Long Liquidations: A surge in leveraged position closures is intensifying selling pressure.
  • Bearish Technical Indicators: Weak market structure is fueling further downside.

Trump’s 25% Auto Tariffs Shake Crypto Markets

A key macroeconomic factor weighing on Ether’s price is U.S. President Donald Trump’s latest tariff announcement, which has heightened investor uncertainty.

Key Points:

  • On March 26, 2025, Trump imposed a 25% tariff on all imported cars and light trucks, effective April 3.
  • Investors fear this policy could spark further sell-offs in the cryptocurrency market, dragging prices lower.
  • The 25% tariff on automobile imports directly impacts major U.S. trading partners, including Mexico, Canada, Japan, and Germany.

    While Trump promotes the move as a boost for the American auto industry, the immediate effect is expected to shake global markets—especially risk-sensitive assets like ETH.

    Historical Precedent: Tariffs and ETH’s Decline

    When Trump first imposed tariffs on Canada, Mexico, and China in early March, ETH plunged from $3,400 to $2,100 within 72 hours before staging a partial recovery.

    Mexico’s Response

    Mexican President Claudia Sheinbaum has stated that her administration will deliver a comprehensive response to the tariffs after April 2, according to The Kobeissi Letter. He further said:

    “Reciprocal tariffs on the reciprocal tariffs are coming.”

    Fears of a trade war and a potential U.S. recession are prompting investors to move away from volatile assets like ETH and toward safer havens, contributing to its price decline.

 

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