- Ethereum has dropped 23% in less than 24 hours, hitting its lowest price since early January due to significant market sell-offs and weak economic data.
- Despite recent recoveries, the crypto market remains volatile, with over half a trillion dollars lost in the past week.
The world’s second-largest crypto asset has tanked a whopping 23% in less than 24 hours, despite the launch of America’s first spot Ethereum exchange-traded funds last month. Ethereum prices plummeted from around $2,900 in late trading on Sunday to bottom out at $2,240 during the Monday morning Asian trading session. This marks the lowest price ETH has seen since early January and the worst performance among the crypto top 15 by market cap.
ETH Gets Punished
Over the past week, Ethereum has lost a staggering 30%, and its current value is more than 50% below its all-time high. The asset had reclaimed $2,300 at the time of writing, as markets had slowed their free fall.
Jump Trading is selling 120,695 $wstETH($481M) and has sold 83K $wstETH($377M) since July 24, leaving 37,604 $wstETH($104M).
— Lookonchain (@lookonchain) August 5, 2024
The market also began to fall after July 24, falling by more than 33%!
According to reports on June 20, the US #CFTC is investigating Jump Trading.… pic.twitter.com/pOoGZknUDh
According to Coinglass, there have been $676 million in crypto liquidations over the past 12 hours, the majority in ETH long positions. The massive market rout has been partly blamed on a selloff by Jump Crypto, with the trading firm offloading hundreds of millions of dollars in assets over the past few days. Ethereum advocate Anthony Sassano suggested that the firm’s exit from the crypto space could be beneficial, saying, “They’ve been a complete parasite on crypto for years, and the industry will be much better off without them.”
Factors Behind the Plunge
#BTC
— Rekt Capital (@rektcapital) August 4, 2024
Bitcoin downside wicked to ~$57500
Bitcoin has therefore completely filled the CME Gap
The very bottom of the CME Gap was $57885$BTC #Crypto #Bitcoin https://t.co/MS4YJtPsqY pic.twitter.com/HEOE8IPFH0
Other factors influencing the significant panic selling include weak economic data from the United States and Asia and a major tech stock sell-off following weaker-than-anticipated revenue reports from major tech and retail giants. Analyst and trader Rekt Capital observed that the Bitcoin CME gap has now been filled, which could lead to a slowdown in the market’s decline. Bitcoin itself fell to $52,600 during trading in Asia on Monday morning, its lowest level since late February, and has corrected 27% from its mid-March all-time high.
This weekend’s massive market crash has been the largest since mid-2022, when markets melted in the wake of the Terra/Luna collapse. Over half a trillion dollars has left the crypto space over the past week, with total capitalization plunging 22%.
Looking Ahead: What’s Next for Ethereum?
As the market tries to stabilize, the question on everyone’s mind is: where to next for ETH? The recent events highlight the volatility and uncertainty within the crypto market, and investors are watching closely for any signs of recovery or further decline. While the exit of Jump Crypto and filled CME gaps may offer some hope, the weak economic data and tech stock performances remain concerning.
Ethereum’s path forward is uncertain, but the resilience of the crypto market often brings unexpected rebounds. As the market digests these dramatic shifts, investors will need to stay vigilant and informed.
