Ethereum’s recent rally has come to a pause as growing fears of a U.S. recession ripple through both traditional and crypto markets. On April 10, Ethereum (ETH) dipped significantly from a local high of $1,700 to around $1,560, reflecting a broader trend of sell-offs across major digital assets.
The downturn wasn’t limited to ETH. Other altcoins like Tezos (XTZ), EOS, and Zcash (ZEC) also faced price drops, while Bitcoin (BTC) fell below the $80,000 mark. These declines closely tracked losses in the stock market, where major indices like the Dow Jones and Nasdaq 100 both posted substantial negative movement.
The sudden wave of uncertainty was largely driven by comments from Moody’s chief economist Mark Zandi, who maintained that the probability of a U.S. recession stands at 60%. Despite a temporary easing of trade tensions, economic sentiment remains fragile, and investors are reacting cautiously.
Crypto markets, known for their volatility, are particularly sensitive to macroeconomic signals. While some investors still view cryptocurrencies as a hedge against inflation and economic instability, others are pulling back, seeking safety in more traditional assets during uncertain times.
From a technical perspective, Ethereum is showing signs of weakness after breaking key support levels. Analysts note that ETH has dropped below important trendlines formed since 2022, with a risk of further decline if bearish sentiment continues.
As global markets navigate through potential economic turbulence, Ethereum and other cryptocurrencies may continue to face headwinds. Traders and investors are advised to keep an eye on macroeconomic updates and adapt their strategies accordingly.
