Ethanol exerts its toxic effects primarily through its action on the central nervous system. It enhances the inhibitory neurotransmitter gamma-aminobutyric acid (GABA) and inhibits the excitatory neurotransmitter glutamate, resulting in sedation and impaired cognitive and motor functions. Chronic exposure can lead to neuronal damage and degeneration. Additionally, the metabolism of ethanol to acetaldehyde, a highly reactive and toxic compound, contributes to its hepatotoxicity.