Ether Cracks as Trump’s Tariff Blitz Jolts Crypto Markets

​The crypto market is taking another bruising, and this time Ether is leading the fall.

On Wednesday, the second-largest cryptocurrency plunged over 6%, sinking to its lowest level since March 2023. It eventually recovered slightly, trading around $1,432 in Singapore. Bitcoin wasn’t spared either, dropping more than 3% before rebounding modestly.

What triggered the latest wave of selling? A fresh escalation in the U.S.-China trade war. President Trump doubled down on his aggressive stance, reaffirming a jaw-dropping 104% tariff on many Chinese imports. Hopes that the tariff saber-rattling might ease? Gone.

While Trump’s team did float the idea of cutting tariffs for “friendly” nations, markets weren’t buying it. Asian equities slumped, and the ripple effect smacked crypto traders with another dose of volatility.

“It seems like people have given up on a major recovery in crypto for the first half of the year,” said Sean McNulty, head of APAC derivatives at FalconX. Traders aren’t just talking—they’re acting. Demand for downside protection exploded, with heavy purchases of put options tied to Ether and Solana.

McNulty pointed to $65,000 as the next key support level for Bitcoin. If that floor cracks, brace for more selling.

The bottom line: macro forces are dominating the crypto narrative again. While blockchain bulls cling to long-term optimism, the short-term outlook is being steamrolled by geopolitics and risk-off sentiment. As long as Trump’s tariff war keeps heating up, don’t expect digital assets to stay insulated. This ride is going to stay bumpy.





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