Introduction
Ethereum crashes to $1,415 on April 7, a two-year low, before rebounding slightly to $1,562. It now sits around $1,607 after a small uptick.
Crypto traders faced a harsh reality on April 7 as a sweeping selloff hammered the market. The digital asset market cap tumbled by approximately 10%, sending ETH and other big-name tokens to their lowest levels since January 2023. CoinGlass data shows over $1.6 billion in leveraged positions vanishing within 24 hours, with exchange API gaps hinting at an even larger wipeout.
DeFi Investors Rush to Limit Damage
ETH’s dip below $1,500 sent investors into a frenzy to safeguard leveraged bets. Lookonchain tracked a whale shifting 10,000 ETH—valued at $15 million—into Sky to protect a $340 million position. If ETH slides under $1,119, this investor could lose up to 220,000 ETH.
DefiLlama predicts that ETH dropping below $900 might erase $600 million in ETH-backed positions. On April 6, a 14% plunge left another whale down 67,570 ETH, costing them $106 million.
Global Uncertainty Drives Selloff
BRN analyst Darren Chu links the crash to darkening moods across global markets, fueled by steep U.S. tariffs unveiled by the Trump administration over the weekend. Risk assets nosedived as investors turned to gold and U.S. bonds for refuge.
CoinPanel’s Dr. Kirill Kretov said, “Trade tensions, geopolitical flare-ups, and mixed economic signals are clashing fiercely.” Altcoins like ETH are taking a heavy beating.
A rumor of a 90-day tariff delay briefly lifted spirits, but the White House dismissed it. The S&P 500 lost $7 trillion in 30 minutes, entering bear market status after three years.
Hints of a Recovery Ahead
Despite the downturn, some see light at the end. RAAC’s Kevin Rusher noted, “ETH below $1,500 was unimaginable months ago—this could be a historic chance to invest in a strong ecosystem.”
BRN flags risk assets as oversold, predicting a possible “Dead Cat Bounce” this week. Key events to monitor include the FOMC minutes, CPI, jobless claims, PPI, and preliminary U.S. consumer sentiment and inflation data.
