Ether Faces Significant Decline Amid Market Volatility

According to CoinDesk, Ether (ETH) is experiencing a significant downturn, reaching levels not observed since November 2023. This decline is attributed to ongoing market volatility, exacerbated by U.S. President Donald Trump's threats of a trade war. In the past 24 hours, ETH has dropped by 15%, as reported by CoinDesk Indices data. This decline has also impacted the CoinDesk 20, an index tracking the largest digital assets, which has fallen by 16%. Over the last three months, Ether's performance has been hindered by bearish investor sentiment. This sentiment is evident in its underperformance compared to Bitcoin (BTC) and a lack of strong institutional demand. Additionally, macroeconomic factors such as trade war fears, inflation concerns, and stock market instability have further reduced risk appetite among investors. Data from CoinGlass indicates that approximately $165 million in ETH long positions have been liquidated within the last 12 hours. Meanwhile, on the prediction market platform Polymarket, bettors are assigning a 76% probability that Ether will reach $1900 by the end of the month. Furthermore, Ether ETF outflows were notably negative last week, with SoSoValue data showing a withdrawal of $335 million. This trend highlights the ongoing challenges faced by Ether in the current economic climate.