"Ethereum Plunges 17.8% Amidst U.S. Tariff Turmoil, $8B in Crypto Liquidations"

Ethereum's recent price decline has left investors reeling, as the cryptocurrency plunged to $2,368, triggering massive market liquidations. The turmoil in the crypto market was exacerbated by geopolitical tensions, particularly U.S. tariff changes, impacting investor sentiment across the asset class. According to Ben Zhou, co-founder of Bybit, the total liquidation across the crypto market could exceed $8 billion, reflecting a broader market condition of uncertainty.

Ethereum, the second-largest cryptocurrency by market cap, witnessed an alarming downward movement, trading at a low of $2,368 on Monday. This decline marked a staggering 17.8% drop in a single day, largely driven by external pressures including new U.S. tariffs instituted by President Trump. The aftermath was swift and harsh, with the crypto market experiencing over $2.3 billion in liquidations across 738,000 traders within 24 hours, highlighting the volatility that has returned to the crypto space.

Data from CoinGlass revealed that long traders faced the heaviest consequences, incurring losses totaling $1.9 billion and representing 84% of the overall liquidations. Within this framework, Ethereum long positions were hit particularly hard, amounting to $473 million of the total liquidations. Min Jung of Presto Research underscored that Ethereum's performance has deviated significantly compared to other major cryptocurrencies, such as Bitcoin and Solana, depicting a market trend that appears increasingly unfavorable for ETH holders.

An analysis of the broader environment indicates that the crypto market's turbulence is intertwined with current geopolitical dynamics, notably Trump's tariff announcements. The implementation of 25% tariffs on imports from Canada and Mexico, alongside a 10% tariff on China, could signal inflationary pressures that complicate the fiscal landscape. Jack Tan, a co-founder of crypto exchange WOO X, emphasized that these conditions render crypto assets less effective as short-term hedges against market volatility.

The volatility surrounding Ethereum reached unprecedented levels during this tumultuous trading session, with metrics showing its one-day at-the-money volatility skyrocketing from 34% to 184%. Deribit's ETH DVOL index, which assesses expected price movement, also rose significantly. Such volatility surges typically indicate