A total of $300 million worth of cryptocurrency was liquidated in the past day, causing a major decline on the market. The prices of important assets like Ethereum have dropped to all-time lows, causing significant harm even though this may not be the biggest liquidation event in history.
For instance, Ethereum has dropped significantly from its recent highs, reaching $3,168. Since the recently released Ethereum ETFs have made institutional active selling possible, one of the main causes of this selling pressure is probably these new offerings.
ETH/USDT Chart by TradingView
For cryptocurrencies, this has led to a difficult environment, especially in light of the general market turmoil. To further aggravate the pressure on financial markets, the stock market's capitalization has dropped by about $1.1 trillion since yesterday. The price decline of 12% that Ethereum has experienced thus far is not shocking, considering the lack of consistent buying that followed the introduction of spot ETFs.
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Similar trends have been seen on Bitcoin, which experienced a decline following the introduction of spot ETFs. Ethereum should ideally stay above $3,000 and below $2,900 to sustain market demand and avert further drops.
According to the liquidation heatmap, Ethereum has the most liquidations, followed by XRP and Bitcoin. This suggests that the current volatility of the market is primarily affecting Ethereum. A total of $12.99 million has been liquidated by exchanges, of which $6 million came from Binance and $3 million from OKX.
Investors and traders are keeping a close eye on key levels, given the current state of the market. Ethereum needs to stay above the $3,000 to $2,900 range in order to keep the market stable. Before making any more moves, Bitcoin's performance will also be continuously watched for confirmations of higher lows.
