Ethereum News Today: Trump Tariffs Spark Crypto Volatility, Ethereum Whales Battle Liquidation Traps

An Ethereum whale liquidated a 6,000-ETH hoard held for nearly two years, netting a $11.13 million profit as the crypto market grappled with Trump-era tariffs and systemic volatilityEthereum Whale Sells ETH After 900 Days, Missing $27M Peak Profit^[1]. The sale, executed at $1,578 per ETH, marked a stark contrast to the $1,295 average purchase price in late 2022Ethereum Whale Sells ETH After 900 Days, Missing $27M Peak Profit^[1]. Meanwhile, the Trump-backed crypto project World Liberty Financial reportedly sold 5,471 ETH at a loss, highlighting the fragmented fortunes of institutional players amid a 24% weekly decline in ETH's priceEthereum Whale Sells ETH After 900 Days, Missing $27M Peak Profit^[1].

The liquidation spree intensified on April 6, when a DeFi whale lost $106 million after a leveraged position on the Sky platform was auto-liquidated due to a 14% ETH price drop$106M ETH Dump: Ethereum Whale Liquidated After Market^[2]. The wallet, which had deposited 82,876 ETH as collateral, fell below the platform's 150% collateral-to-debt ratio, triggering a forced sale of 67,570 ETH$106M ETH Dump: Ethereum Whale Liquidated After Market^[2]. This event underscored the fragility of leveraged positions in a market already pressured by Trump's 10% "bottom tariff" on global trade, which analysts say exacerbated risk-off sentiment$106M ETH Dump: Ethereum Whale Liquidated After Market^[2].

Market observers noted that Ethereum's price action reflected broader systemic risks. While a separate whale injected $14.5 million in ETH to salvage a $300 million position, others faced losses as the market's total capitalization dipped 8% in February and faced renewed downward pressure in early AprilEthereum Whale Sells ETH After 900 Days, Missing $27M Peak Profit^[1]. ChainCatcher analysts attributed the selloff to quarter-end capital rebalancing and looming economic data releases, compounding the strain on leveraged traders$106M ETH Dump: Ethereum Whale Liquidated After Market^[2].

The liquidation dynamics contrasted with bullish whale activity observed in late May, when a major player netted $7.3 million from a $82.76 million ETH sale following a 15-week rallyEthereum Whale Opens $16.3M Long As ETH Price Eyes Bounce^[6]. Ethereum's on-chain metrics also showed tightening supply, with exchange reserves declining 2.03% and large whale purchases surging 18.95% weeklyETH Whale Rakes In $23 Million Profit As Prices Surge 49%^[5]. These trends, coupled with a 49% price surge in June driven by the Pectra upgrade, suggested a potential shift in market sentimentWhale Activity Sparks Ethereum Surge: Could $7,500 Be Next?^[7].

However, risks linger. A $16.35 million long position opened by an Ethereum whale at $4,230 per ETH-using 25x leverage-faces liquidation if prices dip 4.34%. Technical analysts noted that ETH's ability to hold above $4,140 would validate the bullish case, with $7,500 cited as a potential target if institutional demand and regulatory clarity persist.

The Trump administration's tariff policies remain a wild card. While the administration framed the measures as a "Liberation Day" for American manufacturing, crypto analysts warned of prolonged volatility, with DeFi platforms like Sky becoming flashpoints for leveraged liquidations$106M ETH Dump: Ethereum Whale Liquidated After Market^[2]. The interplay between macroeconomic policy and crypto's inherent volatility, experts said, will define Ethereum's trajectory in the coming months$106M ETH Dump: Ethereum Whale Liquidated After Market^[2].