Tariff Impacts Could Lead to $100 Million Liquidation Risk for Ether

Overview

Almost $100 million in Ether (ETH) investments stand on shaky ground if ETH’s price plunges by 15%. Recent trading activity in Asia showed traders enduring notable losses, attributed largely to the effects of President Trump’s tariff policies.

Key Points:

Traders in Asia faced substantial declines due to tariff-related impacts.
ETH trading is notably down, with prices hovering around $1,490, and projections indicate risk of further declines.

Liquidation Risks

If ETH experiences a 15% drop, it could mean significant liquidations for leveraged positions:

On-chain analysis reveals that if ETH drops below $1,274, over $100 million could become liquidated imminently, with spot assets flooding the market.
There’s concern that enduring liquidation impacts may lead to increased market pressure, negatively affecting trading conditions.

Market Performance

On April 7, ETH saw a decline of approximately 16%, and volatility is expected to continue as U.S. market openings loom. Should there be a 20% drop in ETH values, an additional $36 million could be at stake, posing heightened risks to investors.

Conclusion

Investors should remain alert and cautious, evaluating their positions with the evolving economic landscape influenced by political policies.