Key Points
- Bitcoin and Ethereum may face potential declines due to investor withdrawals and tariff tensions.
- Despite uncertainties, both cryptocurrencies are currently holding gains, though signs of potential decline are emerging.
Impact of Tariff Tensions on Cryptocurrencies
Since the presidential inauguration of Donald Trump, the cryptocurrency market has experienced a significant drop, with further declines expected due to ongoing tariff issues. On April 2nd, it was reported that Bitcoin ETFs experienced a $157.8 million outflow, while Ethereum ETFs saw a $3.6 million outflow on April 1st.
These large outflows, often viewed as a bearish sign, suggest that investors are pulling their funds from these assets, which may lead to increased selling pressure and further price drops. Institutions are also reported to be reducing risk in anticipation of the upcoming tariff announcement.
Current State of Bitcoin and Ethereum
Despite these uncertainties, both Bitcoin and Ethereum are holding gains, with increases of 1% and 0.35% respectively over the past 24 hours. According to CoinMarketCap data, Bitcoin was trading near $84,300, while Ethereum was trading near $1,860. However, these gains appear to be fading, with signs of potential decline on the horizon.
If Bitcoin continues to stay below the 200-day Exponential Moving Average (EMA), it could potentially face a 6.5% decline, hitting its next support at $77,400. Similarly, if Ethereum breaches its key level of $1,780, it could face a sharp 15% drop, potentially bringing its price down to $1,550.
Traders’ Views on Bitcoin and Ethereum
Data from on-chain analytics firm Coinglass reveals that traders were over-leveraged at press time, with key levels at $83,320 and $85,960. They have built $811 million and $941 million worth of long and short positions, respectively, indicating a bearish control over the market.
Traders also appear to be strongly bearish on Ethereum, with over-leveraged levels at $1,932 and $1,840. They have built $541 million in short positions and $185 million in long positions over the past 24 hours. This suggests that bears are currently in control, potentially due to the upcoming tariff announcement.
