In this article:
- Ethereum is down 21.5% this month, facing volatility from trade war fears.
- The are big changes ahead: The Pectra Fork upgrade and gas limit increase.
- Eric Trump’s endorsement sparked speculation about insider knowledge.
Ethereum has been keeping traders on their toes with its latest price movements. Right now, ETH is sitting near $2,850, climbing 1.5% in the past hour and 3.3% over the last 24 hours. But the bigger picture isn’t as bright – Ethereum has dropped 9% in the past week and 21.5% over the month.
Despite these declines, ETH remains a dominant force. Over the past quarter, it’s still up 6%, and in the last year, it has climbed 23%. However, investor sentiment remains mixed, as Bitcoin and major altcoins like Solana and XRP have delivered stronger returns.
Table of Contents
Why Is Ethereum Dropping?
Several factors are weighing on Ethereum’s price. Economic uncertainty is playing a major role, with fears of a trade war pushing investors toward safer assets. While Donald Trump recently paused the 25% tariffs on Canada and Mexico, bringing temporary relief to the markets, China has retaliated with its own tariffs, escalating tensions. Additionally, Trump has hinted at potential tariffs on European countries, adding to the market’s unease.
On top of macroeconomic concerns, whales have intensified Ethereum’s volatility, driving the price below key support levels and triggering panic selling.
That’s being said, Ethereum has shown resilience. After one of its sharpest drops, it managed to rebound 7% within 24 hours. Part of this comeback is thanks to institutional investors, who continue pouring money into Ethereum ETFs. In fact, US-based Ethereum ETFs saw $1.5 billion in trading volume recently, proving that big players still see potential in the network.
Upgrades That Could Change the Game
Ethereum isn’t standing still. Major upgrades are on the way, and they could be a game-changer. The Pectra Fork, set for March 2025, will improve Ethereum’s layer-2 solutions, making transactions faster and cheaper.
Another big development is the increase in Ethereum’s gas limit. More than half of Ethereum’s validators have voted to raise the gas limit beyond 30 million, which will help reduce congestion and lower transaction fees.
Vitalik Buterin, Ethereum’s co-founder, has been vocal about these changes. He believes these upgrades will make Ethereum more scalable and user-friendly. If they succeed, it could boost Ethereum’s adoption and help stabilize its price.
Endorsement From Eric Trump
High-profile figures are also joining the conversation. Eric Trump, son of the US President, recently posted:
In my opinion, it’s a great time to add $ETH.
Initially, the post included “thank me later”, but it was later removed. This endorsement has sparked speculation about whether Eric Trump has insider knowledge regarding potential regulatory shifts or developments with World Liberty Financial.
However, it’s important to take celebrity endorsements with a grain of salt – influential figures frequently share bullish opinions on cryptocurrencies, and not all of them hold weight in the long run.
What’s Next for Ethereum?
Despite the developments, Ethereum still faces challenges. There have been concerns about leadership at the Ethereum Foundation, and regulatory uncertainty remains a risk. Plus, no upgrade is ever guaranteed to work as planned. If Ethereum struggles to scale, its dominance could be tested by rivals like XRP or Solana.
However, Ethereum’s developer community remains one of the most dedicated in the crypto space. With major upgrades on the horizon and growing institutional interest, Ethereum is in a strong position for long-term success.
Other cryptocurrencies have also felt the impact of trade war fears, though the market is showing signs of recovery. We’ve broken down the situation here.
