Ethereum ETHUSD, the flagship altcoin, has endured an extremely severe price drop amid a broader market correction.

The cryptocurrency has come awfully close to plunging below the $4,000 level, reaching an intraday low of $4,096, according to CoinGecko data.

According to data provided by CoinGlass, roughly $188 million worth of crypto got liquidated over the past hour alone. 

No China trade deal 

The sudden sell-off comes amid renewed trade tensions between the U.S. and China. 

Earlier today, major U.S. stock market indices, including the tech-heavy Nasdaq, moved sharply lower after the White House threatened to massively increase tariffs on Chinese goods. 

The world’s second-largest economy has been accused of holding the world hostage with its rare earth metals. 

That said, analyst Adam Kobeissi believes that the recent correction is an overreaction since the tariff threat is just a bargaining chip. “We believe trade talks between the US and China will resume after a little turbulence,” he said.