Ethereum plummets by 24% in 15 minutes

On Monday morning, August 5, during Asian trading, the value of Ethereum ETH $3,131.34 Bridged Ether (StarkGate) 0.40% Market capitalization $0.26 billion VOL. 24 hours $1.93 billion plummeted to its lowest level since January 2024, with the leading altcoin hitting $ 2,100. The sharp 24% drop occurred in just 15 minutes and shocked the crypto community.

The main reason for Ethereum sales was the actions of large financial institutions such as Jump Trading. Along with Ethereum, the top crypto assets Bitcoin BTC $97,359.80 Bitcoin 4.48% Market capitalization $1.93 trillion VOL. 24 hours $5.4 billion and Solana SOL $243.39 Solana 2.68% Market capitalization $115.52 billion VOL. 24 hours $1.45 billion lost 10% of their value over the same period.

Over the past 24 hours, the cryptocurrency market has suffered serious liquidations, losing more than $ 830 million. According to Coinglass, Ethereum traders accounted for $ 308 million of the losses.

Crypto analyst DeFi Mochi explains that the sharp drop in Ethereum was caused by large sales by Paradigm and Grayscale. Paradigm sold 46,000 ETH for about $ 138 million, and Grayscale sold 372,000 ETH for about $ 1.1 billion. At the same time, Jump Trading has been actively making significant transfers of Ethereum to centralized exchanges, which has increased pressure on the market.

It is worth noting that Ethereum is lagging behind its competitors this year. Bitcoin and Solana have shown an increase of 27% and 24% since the beginning of the year, respectively, while Ethereum has barely maintained its value.

Global economic problems and geopolitical tensions, especially between Iran and Israel, are increasing market volatility. Unexpected austerity measures from the Bank of Japan, as well as the reluctance of the US Federal Reserve to cut interest rates, increased uncertainty in the market. The cryptocurrency market’s Fear and Greed Index initially fell to 26, rising to 42 at the time of writing. This still indicates worrying trends in the industry and a likely bearish trend.