Ethereum price rally stalls as economist maintains recession odds at 60%

Ethereum dropped to $1,560, down from the intraday high of $1,700. Other top altcoins like Zcash, Tezos, and EOS also pulled back from their highest levels during the day. Ethereum and these altcoins dropped alongside the broader stock market, with the Dow Jones and Nasdaq 100 indices falling by 950 and 650 points, respectively.

The primary driver of this retreat is growing concern that the US may be heading toward a recession, even after Donald Trump paused some of his Liberation Day tariffs. 

In a post on X, Mark Zandi, the chief economist at Moody’s, warned there was a 60% chance of the US entering a recession this year. His comments carry weight, as Moody’s is the second-largest ratings agency globally, and Zandi is considered one of the top economists in the country.