In an unexpected turn of events, Ethereum’s price tumbled approximately 8% to $3,150 just a day after its spot ETF hit the market. This sharp downturn triggered a significant wave of liquidations in the crypto space.
Data from market analytics platforms revealed that Ethereum-related liquidations reached $97.8 million in a 24-hour period, overshadowing Bitcoin’s $80.9 million. Long positions bore the brunt of these liquidations, accounting for the majority of the total.
Market observers have drawn parallels between this event and the “sell-the-news” phenomenon seen with Bitcoin’s ETF earlier in the year. Adding to the selling pressure, blockchain data indicated substantial movements from a large Ethereum holder, who deposited a considerable amount of ETH on a major exchange shortly before the price drop.
Industry analysts point to various factors potentially influencing this market behavior, including ongoing cryptocurrency distributions from previous exchange hacks and a perceived stagnation in Ethereum’s fundamental metrics.
Despite the current downturn, some market experts remain optimistic, suggesting that Ethereum might find a support level around its current price before potentially resuming an upward trajectory. As always, the cryptocurrency market continues to demonstrate its volatile nature, keeping investors and enthusiasts on their toes.
Ethereum Faces Steep Decline After ETF Launch
