Here’s Why Ethereum Price Is Falling Today

A day after the successful launch of the Ethereum spot ETF, the Ethereum price came under heavy selling pressure, crashing by more than 8% and dropping to as low as $3,150. This led to a sharp liquidation of Ethereum long positions over the past 24 hours.

Ethereum Liquidations Soar

According to data from Coinglass, the total number of Ethereum liquidations has surpassed that of Bitcoin in the last 24 hours. The data shows that Ethereum liquidations currently stand at $97.8 million, while Bitcoin liquidations stand at $80.9 million.

Of the total ETH liquidations, $94.4 million were long liquidations and only $43.3 million were short liquidations. Interestingly, most of these liquidations happened in the last 4 hours as Ethereum price faced tremendous selling pressure.

It seems that the approval of the Ethereum Spot ETF The ETF approval announcement turned out to be a similar selling event to what we saw in Bitcoin earlier this year in January. With the price of ETH surging to $3,500 in July, investors seem to be finally cashing in on the euphoria surrounding the ETF approval.

Read also : Hashdex Files S-1 for Combined Bitcoin and Ethereum ETF

Additionally, on-chain data shows that a giant Ethereum whale dumped its coins on Wednesday, July 24. According to Spot on Chain data, a giant Ethereum whale generated $173 million in profits from ETH, while depositing 10,000 ETH on Kraken worth $34.2 million, just before the Ethereum price crashed.

This whale reportedly withdrew 96,639 ETH from Coinbase at $1,580 in September 2022. Since March of this year, the whale has transferred nearly 40,000 ETH to Kraken. The whale still holds a remaining balance of 56,639 ETH valued at $188 million at the current price ETH Price

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Additionally, 10xResearch noted that the current Mt. Gox Distributions are putting pressure on the broader cryptocurrency market.

“If this trend continues, cryptocurrencies will need more help to recover. Ethereum could be the weakest link, where fundamentals (new users, revenue, etc.) have stagnated or declined,” noted 10x Search.

Read also : Kraken exchange under fire as some Mt Gox creditors complain

Will Ethereum Price Reverse Soon?

Michael van de Poppe, a renowned crypto analyst, said that ETH price could see some reversal due to the large outflows from the Grayscale Ethereum Trust. ETH could see two weeks of downward movement before resuming its rally to new all-time highs. According to the chart, Ethereum could take support around $3,150 before resuming its upward gains.

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