Ethereum (ETH) Price Drops Below $2K Despite Trump’s Speech at Blockwork’s Digital Asset Summit

Ethereum (ETH) price showed promising price action earlier this week, but latest price action suggests the optimism may have already petered out in less than 24 hours.

Ethereum (ETH) price closed trading on Tuesday below the $2,000 mark, falling 5% from weekly timeframe highs of $2,067 hit 24 hours prior. Disinterest among short-term traders may put the cryptocurrency at risk of another pull back towards $1,850.

According to CoinMarketCap data, Ethereum price now trades at $1,965 at the time of writing, on Tuesday morning.

Following a 10% rally at the start of the week, from $1,760 to $1,965, Ethereum showed promising price action earlier in the week. However, latest price action suggests the optimism may have already petered out in less than 24 hours.

The former U.S. president's appearance at Blockwork's Digital Asset Summit, boosted market momentum on Thursday, driving ETH price above the $2,067 mark.

As the chart above shows, the majority of ETH bull traders failed to hold the gains for up-to 24 hours. Following Trump’s speech, Ethereum opened trading on Friday above the $2,000 level for the first time in nearly two-weeks dating back to March 9.

However, bulls failed to build on the rebound, as ETH price rapidly plunged below the $2,000 mark and closed for the day around $1,965.

But as seen in the chart above, the persistent decline in ETH trading volumes suggests bears could struggle to drive major downward moves in the coming trading session.

Ethereum Derivatives Market Analysis: Open Interest Dips Below $20 Billion but Multiple Upside Signals Remain

The cryptocurrency market is quickly shifting, with recent data from Coinglass revealing a 26.7% decrease in trading volume over the past 24 hours, now at $22.80B.

Despite this, open interest remains high, albeit lower than yesterday, with a total of $19.94B, still in triple digits and only slightly dipping below the $20B threshold.

Furthermore, institutional speculators are also scaling down their exposure, with options open interest decreasing by 5.45% to $5.88B.

Conversely, Liquidation data also provides key insights into recent negative tilt in mark sentiment. Over the past 24 hours, total rekt positions reached $24.63M, with $17.18M in long liquidations and $7.45M in short liquidations, suggesting that bullish traders were over-leveraged before recent price correction.

Additionally, $3.47M was wiped in the past 4 hours, further reflecting the market’s vulnerability to sudden price swings.

Ethereum price outlook today: Failure to Hold $1,850 Exposes ETH to More Downside Risks

ETH price is trading just above the $1,900 mark at press time. However, Ethereum price forecast signals on derivatives trends suggest caution is warranted if ETH stagnates near $2,000.

The Coinglass derivatives chart shows ETH/USDT long/short ratios on Binance (3.42) and OKX (3.44) show bullish positioning from traders, with Binance's top traders maintaining a 4.16 long/short ratio on accounts. This suggest that traders may be entering fresh bullish positions after the recent profit-taking phase that ensued after Trump’s speech on Thursday.

A prolonged lack of directional momentum could deter speculative traders, and prompt existing holders to close ETH positions in search of more volatile assets. In this scenario, further declines in market participation could drive open interest below $20B, weakening key support levels around $1,850, and exposing ETH to potential downside risks.

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