Introduction
Ethereum sinks to $1,415 on April 7, its lowest in two years, before edging up to $1,562. As of now, it hovers around $1,607 after a partial bounce.
On April 7, a brutal selloff rocked the crypto market, catching traders off guard. The digital asset market’s total value plummeted by about 10%, driving tokens like ETH to their weakest points since January 2023. CoinGlass tracked over $1.6 billion in liquidated leveraged positions within 24 hours, with exchange API constraints likely hiding an even bigger tally.
DeFi Investors Fight to Stay Afloat
ETH’s slide below $1,500 sparked panic among investors desperate to save leveraged bets. Lookonchain data shows a whale moving 10,000 ETH—worth roughly $15 million—into Sky to shield a $340 million position. If ETH falls below $1,119, this investor could lose 220,000 ETH.
DefiLlama estimates that ETH dropping under $900 might wipe out $600 million in ETH-backed positions. Just a day earlier, on April 6, a 14% plunge cost another whale 67,570 ETH, equating to a $106 million loss.
Macro Tensions Spark Market Chaos
Darren Chu from BRN ties the selloff to gloom across global markets, triggered by sky-high U.S. tariffs rolled out by the Trump administration over the weekend. Risk assets took a beating as investors pivoted to gold and U.S. bonds for safety.
CoinPanel’s Dr. Kirill Kretov explained, “Trade wars, geopolitical hotspots, and clashing economic signals are piling on pressure.” Altcoins like ETH are reeling in this stormy climate.
A fleeting rumor of a 90-day tariff delay briefly boosted spirits, but the White House shot it down. The S&P 500 cratered, losing $7 trillion in 30 minutes and entering bear market territory after three years.
Could a Rebound Be Near?
Despite the chaos, some experts see a silver lining. RAAC’s Kevin Rusher said, “ETH under $1,500 was unthinkable recently, but this could be a golden entry into a robust ecosystem.”
BRN notes that risk assets appear oversold, raising hopes of a quick “Dead Cat Bounce” this week. Keep an eye on the FOMC minutes, CPI, jobless claims, PPI, and initial U.S. consumer sentiment and inflation figures.
