Ethereum eyes recovery after Trump tariff-induced market crash saw investors realizing $1.2 billion losses 

Ethereum investors realized losses worth over $1.2 billion in the past three days after the general crypto market decline.
Ethereum could see a recovery as whales buy the dip following Donald Trump and the Mexican President’s tariff resolution.
ETH eyes a move above $2,800 after bouncing near a historically high demand zone between $2,200 and $2,600.
Ethereum (ETH) is down 5% on Monday following the wider crypto market decline sparked by United States (US) President Donald Trump’s tariffs on Mexico, Canada and China. Despite the bearish sentiments, ETH could stage a comeback as bulls are looking to recover the $2,817 key support level.Ethereum experienced one of its largest single-day drawdowns in the current cycle in the past 24 hours, declining nearly 25% in the early hours of Monday before seeing a rebound.The price crash saw Ethereum traders sustaining the highest liquidation in the crypto market, with over $620 million in liquidated futures positions in the past 24 hours, per Coinglass data. The total amount of liquidated long and short positions accounted for $464 million and $157 million, respectively.Notably, crypto exchange Bybit CEO Ben Zhou noted in an X post on Monday that the market liquidations are higher than what was captured in crypto data providers due to API limitations.Ben Zhou in a Monday X postOn the spot market, both long-term and short-term holders contributed to the selling pressure, realizing over $1.2 billion in losses in the past three days — the highest since September 2023.ETH Network Realized Profit/Loss. Source: SantimentSimilar to the general crypto market, ETH’s decline was sparked by speculations of a global trade war after President Donald Trump slapped tariffs on imported goods from Mexico and Canada, with an additional 10% levy on China on top of existing tariffs.With dominant bearish sentiment in the market, Nick Forster, founder of crypto derivatives exchange Derive, highlighted in a note to FXStreet that the exchange’s options market is “currently pricing in a 14% chance of ETH reaching $2,000 before March 28.”He added that ETH is likely to stagnate for the next 1-2 quarters due to its declining market dominance and transaction volume.”ETH has seen its dominance drop to just 10.9% from 17.3% at the start of 2024. Additionally, ETH’s daily transaction volume has remained fairly flat over the past 4 years, hovering around 1.25 million transactions per day despite the Merge,” wrote Forster.Ethereum Daily Transactions. Source: EtherscanHowever, with Mexican President Claudia Sheinbaum reaching an agreement with Trump to pause the country’s tariff for one month, Ethereum could see a recovery alongside the wider crypto market.On-chain data shows whales are already buying the dip as a whale wallet tagged “7 Siblings” bought 50,429 ETH for an average price of $126 million after the market crash, per Lookonchain data.Meanwhile US spot Ethereum exchange-traded funds (ETFs) saw $45.3 millioin in outflows last we