All the good news is bad news!!!
Here’s why Ethereum is falling today👇
One day after the successful launch of the Ethereum spot ETF, Ethereum prices faced strong selling pressure, falling more than 8% all the way to $3,150. This led to a large number of liquidations of Ethereum long positions in the past 24 hours.
According to data, the total liquidations of Ethereum in the past 24 hours have exceeded that of Bitcoin. Data shows that Ethereum’s liquidations are currently $97.8 million, while Bitcoin’s liquidations are $80.9 million.
Of all ETH liquidations, $94.4 million were long liquidations and only $43.3 million were short liquidations. Interestingly, most of these liquidations occurred in the past 4 hours, when Ethereum prices faced huge selling pressure.
It seems that the approval of the Ethereum spot ETF has actually turned into a sell-off news event, similar to what we saw with Bitcoin in early January this year. As ETH prices rose to $3,500 in July, investors seemed to finally profit from the excitement brought about by the approval of the ETF.
Data shows that a huge Ethereum whale has been selling its tokens yesterday. According to the data, just before the Ethereum price fell, a huge Ethereum whale made a profit of $173 million from ETH while depositing 10,000 ETH on Kraken, worth $34.2 million.
The whale withdrew 96,639 ETH from Coinbase at a price of $1,580 in September 2022. Since March this year, the whale has transferred nearly 40,000 ETH to Kraken. At the current ETH price, the whale still holds a remaining balance of 56,639 ETH, worth $188 million.
In addition, the current Mt. Gox distribution is putting pressure on the broader crypto market.
With a massive outflow from Grayscale Ethereum Trust, ETH prices could see some reversals. ETH could experience a two-week downtrend before resuming its rally to new all-time highs. According to the chart, Ethereum could find support around $3,150 before resuming its rise.
If it fails to break below support, there will be a wave of opportunities for retail investors, as long as they find the hot sectors that will stand out in this round of pullback......
