Ethereum fell by 7.5% per day

A day after the successful launch of the spot Ethereum ETF, the price of the leading altcoin ETH $3,355.89 Bridged Ether (StarkGate) 1.39% Market capitalization $0.28 billion VOL. 24 hours $2.68 billion has experienced a significant drop. This caused massive liquidations of long ETH positions over the past 24 hours.

According to Coinglass, Ethereum liquidations exceeded Bitcoin liquidations BTC $98,707.41 Bitcoin 1.19% Market capitalization $1.95 trillion VOL. 24 hours $5.42 billion during this period. In particular, the liquidations of the second largest cryptocurrency by capitalization reached $ 100.85 million, compared to $ 83.35 million for Bitcoin.

Experts in the digital asset market explained that the approval of the spot Ethereum ETF was a «sell-the-news» event, similar to what happened with Bitcoin earlier this year. After the price of Ethereum hit $ 3,500 in July, investors began to withdraw funds, capitalizing on the hype surrounding the ETF.

Online data also shows that one of the biggest «whales» Ethereum has completely sold off its assets. According to Spot on Chain, the whale made $ 173 million in profit by depositing 10,000 ETH worth $ 34.2 million on the Kraken crypto exchange just before the price plummeted. The virtual coin holder withdrew 96,639 ETH from the Coinbase platform in September 2022, when the price was $ 1,580 per ETH. Since March, he has transferred almost 40,000 ETH to Kraken and currently owns 56,639 ETH, worth $ 188 million at the current price.

10xResearch's research indicates that the current distributions from Mt. Gox is putting pressure on the entire cryptocurrency market. If this trend continues, the cryptocurrency market will need more support to recover, and Ethereum may be the most vulnerable due to stagnation or decline in fundamentals — the number of new users on the blockchain and revenue.

We would like to add that popular crypto analyst Michael van de Poppe believes that the price of Ethereum may decline due to significant outflows from the Grayscale Ethereum Trust. He predicts a two-week decline before a possible recovery to new record highs. According to his analysis, Ethereum may find support around $ 3,150 before continuing to rise.