The Ethereum price has taken a significant hit, losing 9% of its value within a mere 24 hours. This sudden drop has been unsettling for traders and investors alike, prompting several questions about what triggered such a sharp decline. Let’s break down the factors contributing to this noteworthy plunge.
To start, Ethereum led a staggering $700 million in net cryptocurrency liquidations. According to data from Coinglass, over $152 million in Ethereum was liquidated, which included approximately $132 million in long positions. In comparison, Bitcoin’s liquidations were approximately $128 million. Overall, the total crypto liquidation reached $710 million during this period, affecting roughly 237,476 traders. A standout incident occurred on Binance, where a massive $17.74 million ETH sale was recorded—one of the largest in Ethereum’s history.
The second factor behind Ethereum’s swift decline was the selling activity by whales and institutional investors. As the price fell, these significant players decided to cut their losses. This action came in light of strong U.S. macroeconomic data, particularly from JOLTS job openings and ISM Services PMI, which fueled concern that the Federal Reserve might postpone rate cuts this year. Notably, a transfer of 40,000 ETH—worth roughly $140.44 million—was noted moving from Arbitrum to Binance, along with other substantial transactions to major exchanges like Coinbase.
Adding salt to the wound, the Ethereum Foundation made its first ETH sale of 2025, transferring 100 ETH for about $336,000. This doesn’t help foster confidence in Ethereum’s upward potential, especially since the foundation has offloaded nearly $12.96 million in ETH this year alone.
Moreover, spot Ethereum ETFs experienced a net outflow of $86.8 million on Tuesday, indicating dwindling confidence among institutional investors. Major outflows were observed from well-known funds, including Fidelity’s FETH and Grayscale’s ETHE. Such happenings usually yield valuable insights into market sentiment, and the recent trends do not paint a rosy picture for Ethereum’s immediate future.
As of now, Ethereum’s price sits at $3,329, with few signs of recovery in sight. Price targets have been set between $5,000 and $10,000 by optimistic analysts, while others remain cautious. Data shows that open interest in Ethereum derivatives has dipped by 7%, though some investors are still eyeing potential bounce-back opportunities. One analyst, IncomeSharks, suggested a short-term trading approach, while another, Crypto Tony, maintained that holding above $3,200 might open doors for recovery.
In these trying times, it’s vital for investors to stay informed and understand the landscape. While the current scenario may seem grim, Ethereum has shown resilience in the past. As always, wise evaluation and careful decision-making remain paramount in navigating these turbulent waters.
