Ethereum's ETH Price Plummets Amid China-US Trade Tensions

Ethereum Price Predictions: China's Trade War with the US Could Push ETH Back to $2200-$2400

In a recent social media post, Andrew Kang, a partner at Mechanism Capital, expressed concerns about potential economic tensions between China and the United States. Kang suggested that if an escalation in trade relations occurs, Ethereum's price could retract to the $2200-$2400 range. Kang's previous assessments indicated that during the recent market fluctuation, Ethereum appeared to be oversold, presenting a possible buying opportunity or a chance for recovery towards the $2700 mark.

In a significant move, the Chinese State Council Customs Tariff Commission announced that effective February 10, 2025, tariffs will be levied on select imported goods from the US. The proposed tariffs include a 15% rate on coal and liquefied natural gas, alongside a 10% tariff applied to crude oil, agricultural machinery, high-displacement vehicles, and trucks. This news has led to an immediate decline in market sentiment, reflecting the ongoing volatility and market uncertainty surrounding cryptocurrency investments.

BlockBeats News, February 4th, Mechanism Capital partner Andrew Kang stated on social media that if China does engage in a trade war with the US, Ethereum will drop back to the $2200-2400 range. BlockBeats previously reported that during yesterday's market downturn, Andrew Kang mentioned that "ETH may be oversold at the moment, making it a good buy or it may rebound to $2700." Just now, the Chinese State Council Customs Tariff Commission issued a notice stating that starting from February 10, 2025, tariffs will be imposed on some imported goods originating from the United States. A 15% tariff will be imposed on coal and liquefied natural gas, while a 10% tariff will be imposed on crude oil, agricultural machinery, high-displacement vehicles, and trucks. The market quickly reacted with a downturn.