According to U.Today, a significant $300 million worth of cryptocurrency was liquidated in the past day, leading to a sharp decline in the market. Major assets like Ethereum have reached new lows, highlighting the severity of the situation, even though this isn't the largest liquidation event in history.
Ethereum's price has notably dropped to $3,168 from recent highs. The introduction of Ethereum ETFs has facilitated institutional selling, likely contributing to the selling pressure. The ETHUSDT chart, according to TradingView, reflects this downturn.
This challenging environment for cryptocurrencies is exacerbated by broader market turmoil, with the stock market's capitalization decreasing by about $1.1 trillion since yesterday. Ethereum's 12% price decline is not surprising given the lack of consistent buying following the introduction of spot ETFs.
Bitcoin has experienced similar trends, with a decline also linked to the introduction of spot ETFs. For Ethereum to maintain market demand and avoid further declines, it needs to stay above the $3,000 to $2,900 range.
The liquidation heatmap shows that Ethereum has the highest number of liquidations, followed by XRP and Bitcoin, indicating that the current market volatility is heavily impacting Ethereum. Exchanges have liquidated a total of $12.99 million, with Binance and OKX accounting for $6 million and $3 million, respectively.
Investors and traders are closely monitoring key levels, with Ethereum needing to stay within the $3,000 to $2,900 range to maintain market stability. Bitcoin's performance is also under scrutiny for signs of higher lows before any further moves.
