Ethereum News Today: Cryptocurrencies Fall Amid Deleveraging and Geopolitical Uncertainty

Cryptocurrencies extended their downward movement in late August 2025, continuing to pull back from recent record highs. Following a sharp selloff after Bitcoin (BTC-USD) hit all-time highs the previous week, further losses were observed, with investors engaging in widespread profit-taking following a recent rally [1]. Ethereum (ETH-USD) also slipped, breaking below key resistance levels, while XRP dropped more than 5% below the $3 level [4].

The broader crypto market saw its total market capitalization fall to $3.89 trillion as of late August [5]. This decline was attributed to a combination of heightened concerns over macroeconomic conditions and geopolitical uncertainty, both of which have traditionally influenced risk-on assets [6]. Retail investors appear to be reducing their exposure to crypto, with a significant drop in retail holdings reported in mid-August according to data from IntoTheBlock [7]. This behavior signals a broader deleveraging trend following weeks of strong gains.

Ethereum’s decline was further influenced by the expiration of bullish momentum from a U.S. executive order aimed at supporting blockchain innovation [3]. While the policy initially sparked a surge in altcoins, the market has since shifted toward a more cautious stance. Ethereum’s current price movement is contained within a descending channel, with key support levels under test [4].

XRP and Cardano (ADA) were also hit hard, with both assets falling more than 3.7% and 6.2%, respectively, in the 24 hours leading up to mid-August [8]. The steep declines in these altcoins reflect the heightened sensitivity of the crypto market to overall sentiment and liquidity conditions.

Bitcoin, in particular, has tested the 50-day EMA support level after a quiet weekend, raising concerns about further losses if it fails to stabilize above this key technical level [4]. The market is currently in a phase of consolidation after a recent surge, and volatility is expected to persist in the near term.

The ongoing selloff highlights the cyclical and speculative nature of the crypto market, as traders and investors adjust to shifting macroeconomic signals and profit-taking opportunities. The focus now remains on whether key support levels hold and whether new catalysts emerge to reinvigorate the upward trend.

Source:

[1] Cryptocurrencies Extend Their Decline From Recent Highs (https://seekingalpha.com/article/4814622-cryptocurrencies-extend-decline-recent-highs)

[2] Bitcoin, Ethereum Slip as Crypto Markets Pull Back After Hitting (https://finance.yahoo.com/news/bitcoin-ethereum-slip-as-crypto-markets-pull-back-after-hitting-2025-highs-155818704.html)

[3] Why Ethereum Is Sinking Today (https://www.mitrade.com/insights/news/live-news/article-8-1048964-20250819)

[4] Bitcoin Tests Key 50-Day EMA Support as Ethereum, XRP... (https://www.fxstreet.com/cryptocurrencies/news/crypto-today-bitcoin-ethereum-xrp-risk-further-losses-as-liquidations-cross-500-million-202508181127)

[5] Fed Fears Drag Down Cryptos (https://www.rttnews.com/3566978/fed-fears-drag-down-cryptos.aspx)

[6] Crypto Markets Dip Amid Geopolitical Uncertainty (https://thedefiant.io/news/markets/crypto-markets-dip-amid-geopolitical-uncertainty)

[7] Cryptocurrencies Continue to Decline Amid Deleveraging (https://londonlovesbusiness.com/cryptocurrencies-continue-to-decline-amid-deleveraging-after-recent-gains/)

[8] Why XRP Is Going Down? XRP Price Drops 5% as Bitcoin... (https://www.tradingview.com/news/financemagnates:df8d511ac094b:0-why-xrp-is-going-down-xrp-price-drops-5-as-bitcoin-and-ethereum-retreat-amid-heavy-crypto-profit-taking/)