#ETH# Ethereum was heavily impacted, dropping 55% from its peak in December, while the broader crypto market struggles with global economic uncertainty.

This decline is largely due to the unpredictable economic position of U.S. President Donald Trump and the aggressive tariff policy, which weakened investor confidence and increased the reluctance to take on risk.
As a result, the price of Ethereum fell below critical support levels, with sellers dominating short-term trading.
Despite the bearish outlook, some data suggests a potential long-term recovery. CryptoQuant reports a steady decline in Ethereum reserves on centralized exchanges since 2022, indicating a reduced supply. Although this has not yet triggered a rally, it could pave the way for a price surge if demand increases.
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Currently, Ethereum is testing key support around $1,500 after weeks of selling pressure. A drop below this level could signal deeper losses, especially as economic factors remain a challenge. Bulls have been struggling since February, failing to regain their momentum after the drop below $2,500.
From a technical perspective, Ethereum remains below significant indicators, such as the 200-day moving average ($2.500) and the exponential moving average ($2.250), highlighting the ongoing weakness.
The return to the threshold of $1,800 is crucial to avoid further crashes, while a return to $2,000 could signal a potential recovery. For now, the reduced supply suggests long-term potential, but the immediate outlook remains unstable.