ETH Plunge: Doom Looming?

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Right then, what’s all this fuss about Ethereum, eh? Seems the jolly old price has taken a bit of a tumble, rather like a clumsy chap tripping over his own feet at a garden party. 😩 All those gains from earlier in the week? Vanished! Poof! Gone like a perfectly good cucumber sandwich at a vicar’s picnic. Apparently, trade whatnots are to blame.

Ethereum (ETH), that second-in-command of the cryptocurrency brigade, has plummeted to a measly $1,560. A far cry from the dizzying heights of $1,700. One shudders to think! Other altcoins, such as Zcash (ZEC), Tezos (XTZ), and EOS (EOS), also decided to join the downward spiral. Even Bitcoin, that stalwart of the digital age, couldn’t resist a bit of a wobble, dropping from $82,000 to a paltry $80,000. The cheek of it!

Of course, Ethereum and its altcoin chums didn’t tumble alone. No, they had the entire stock market for company. The Dow Jones and Nasdaq 100 indices, those paragons of financial fortitude, decided to take a nosedive as well, falling by 950 and 650 points, respectively. One might almost think the end is nigh! 😱

The main culprit, you ask? Why, none other than the dreaded R-word: Recession! Yes, that’s right, the US might be heading for a spot of economic bother, even after Donald Trump decided to be ever so generous and pause some of his Liberation Day tariffs. How very magnanimous of him! 🙄

Enter Mark Zandi, the chief economist at Moody’s, with a dire warning on X (formerly known as Twitter, but let’s not dwell on that). He reckons there’s a 60% chance of the US plunging into recession this year. A rather gloomy outlook, wouldn’t you agree? And one can’t simply dismiss his pronouncements, seeing as Moody’s is the second-largest ratings agency globally, and Zandi himself is considered a bit of a whiz in the economics department.

It was encouraging to see the President reverse himself on the so-called “reciprocal” tariffs yesterday, but I wouldn’t take much solace in it as the global trade war continues to rage. I still put the odds of a recession this year at 60%.

— Mark Zandi (@Markzandi) April 10, 2025

Zandi points his monocle (presumably) at the ongoing trade war between the US and China. Tariffs are flying hither and thither, like confetti at a particularly exuberant wedding. Chinese goods entering the US now face a 125% tariff, while the US gets slapped with an 85% tariff on exports to China. A jolly fine mess, if you ask me! And particularly irksome, considering these two nations are among the world’s biggest trading partners.

And let’s not forget the US still slaps a 10% tariff on goods from other countries. Certain sectors, like automobiles, steel, and aluminum, get an even heftier 25% tariff. As a result, Zandi estimates the effective US tariff rate at a rather eye-watering 20%, far higher than most other countries. Oh, the humanity! 😫

Ethereum price technical analysis

The weekly chart, that ever-reliable source of financial misery, shows that Ethereum remains stuck in a downtrend, thanks to those persistent recession fears. The decline started after ETH formed a triple-top pattern at $4,065. It then went and broke below the key support level of $2,125, its lowest level since October last year. It also tumbled beneath the ascending trendline connecting swing lows since June 2022. The blighter!

The Relative Strength Index and the MACD indicators, those cryptic oracles of the financial world, are both pointing downwards. The RSI is even nearing oversold territory! Heavens to Murgatroyd! Therefore, it seems likely that Ethereum’s price will continue its downward journey, with sellers eyeing that next key psychological level at a measly $1,000. One shudders at the thought! 😨

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2025-04-10 18:01