Ethereum Plunges Below $2100 Amidst Trump's Trade Tariffs

Ethereum (ETH) Price Plummets Below $2100: What’s Behind the Drop and What It Means for Investors

The price of Ethereum (ETH) has taken a significant tumble, falling below the $2100 mark. This decline comes amidst a broader sell-off in the cryptocurrency market, with Bitcoin (BTC) also experiencing a sharp drop. The recent trade tariffs imposed by U.S. President Donald Trump on China, Canada, and Mexico have rattled global markets, leading to a risk-off sentiment that has spilled over into the crypto sphere.

The tariffs, which include a 25% duty on imports from Canada and Mexico and a 10% tariff on Chinese goods, have sparked concerns about an escalating trade war. This, in turn, has led to a sell-off in riskier assets, including cryptocurrencies. The decline in ETH and BTC prices follows a 1.5% slump in Wall Street futures, as traders position for a renewed trade war.

The impact of Trump's tariffs has been felt across the crypto market, with ETH and BTC prices falling by 22.7% and 10%, respectively. The memecoin $TRUMP, launched by the President in January, has also slid over 15% to a record low of $16.349.

The recent executive order by President Trump calling for a crypto regulatory framework has done little to boost market sentiment. The prospect of friendlier crypto regulations under the 47th President has been largely offset by the impact of the trade tariffs.

The broader risk-off move has also pushed the dollar to a near one-month peak, with safe havens such as gold seeing some bids. However, the dollar remains the main target of most buying. Analysts warn that Trump's tariffs could drive up inflation and dent U.S. economic growth, potentially lessening the prospect of interest rate cuts by the Federal Reserve.

In addition to the trade tariffs, other factors may be contributing to the decline in ETH and BTC prices. A dormant ETH whale, silent for six years, moved 77,736 ETH to Bitfinex before the crash, potentially signaling increased liquidity in a currently volatile market. Meanwhile, a notable whale took a strategic position by shorting ETH