Ethereum Drops Over 7% Amid $40 Billion Market Cap Loss in Global Crypto Slump

Ethereum experienced a significant price decline recently, dropping over 6% in a short period and erasing billions in market capitalization amid widespread liquidations and bearish market sentiment. The cryptocurrency fell below key technical support levels, triggering automated stop-loss orders and causing a cascade of forced selling due to margin calls on leveraged positions. This downturn coincides with broader pressure across the crypto market, including declines in Bitcoin and altcoins, influenced by global monetary policy shifts, Federal Reserve interest rate changes, and renewed investor caution reflected in the Fear and Greed Index. Despite the short-term volatility and technical weakness, some on-chain data indicate ongoing institutional accumulation, suggesting potential for longer-term recovery. Market participants remain wary as macroeconomic factors such as inflation data, Fed policy decisions, and global market jitters continue to affect crypto asset performance. Overall, Ethereum's recent price movements highlight the interplay of technical, fundamental, and macroeconomic forces shaping the cryptocurrency landscape.