Ethereum hits new 2-year low amid tariff talk and major whale liquidation
Ethereum plunges to two-year low after $100M whale liquidation.
Ethereum's price recently crashed to a fresh two-year low after a dramatic decline over the past week. A combination of bearish market conditions and a high-profile liquidation event has left Ether investors facing heavy losses.
After peaking at $4,100 in December last year, Ethereum has seen a steep 65% drop in value. This decline has been compounded by the asset's failure to hold key support levels, as it extends to a third week of consecutive decline within a 5-month-long downtrend. Over the weekend, typically a period of low liquidity, Ethereum experienced a sharp 15% drop. This move was spurred by President Donald Trump's comments on tariff policies, which rattled market sentiment.
Ethereum whales, in particular, felt the sting, with one investor facing a liquidation of over $100 million on the decentralized finance (DeFi) lending platform, Sky. The liquidation involved a massive position of 67,570 ETH, valued at roughly $106 million, which contributed to the downward pressure on Ethereum’s price.
ETH price dynamics (July 2022 - April 2025). Source: Tradingview
Ethereum’s recovery hinges on $1,370 support amid broader market weakness
As of Monday, April 7th, Ethereum broke through another key support at $1,522 and fell further to $1,410 before stabilizing at $1,450 during the European session. This price level represents a fresh two-year low, not seen since March 2023. A near-term support level is now seen at $1,370, while the previously broken support at $1,522 has shifted to a critical resistance level.
Looking ahead, Ethereum’s price remains vulnerable to further downside risks. A failure to hold the support at $1,370 could see the cryptocurrency test new lows. Conversely, any recovery will likely face resistance around $1,522, with the market's sentiment still heavily influenced by broader macroeconomic factors and DeFi-related liquidations.
Ethereum's price dropped below $1,760, reaching $1,750, the lowest since October 2023. The rebound failed to break resistance at the 50 and 100-hour EMAs, leading to a 1.7% daily decline.
