Ethereum Prices Fall 23% in Massive Market Drop, Where to Next for ETH?

The world’s second-largest crypto asset has plunged 23% in less than 24 hours, despite the launch of America’s first Ethereum exchange-traded funds last month.

Ethereum prices plummeted from around $2,900 on Sunday afternoon to bottom out at $2,240 during the Asian trading session on Monday morning.

It is the lowest price ETH has seen since early January and is the worst performing asset in the top 15 cryptos by market cap.

ETH is punished

Ethereum has lost 30% over the past week. It fell off a cliff in August and is back down more than 50% from its all-time high.

The asset had recovered $2,300 at the time of writing as markets slowed their freefall.

According to Coinglass, there have been $676 million in crypto liquidations over the past 12 hours, most of which were long ETH positions.

The massive market crash has been attributed in part to the sale of Jump Crypto, as the trading firm has unloaded hundreds of millions of dollars in assets over the past few days.

Jump Trading is selling 120,695 $wstETH(481 million dollars) and has sold 83 thousand $wstETH($377 million) since July 24, leaving 37,604 $wstETH($104 million).

The market also started falling after July 24th, with a drop of over 33%!

According to reports on June 20, the US #CFTC is investigating Jump Trading… pic.twitter.com/pOoGZknUDh

— Lookonchain (@lookonchain) August 5, 2024

Ethereum lawyer Anthony Sassano said the company exiting the crypto space could be one of the most bullish things to happen in a long time.

“They have been a complete parasite on crypto for years and the industry will be much better off without them.”

Other factors influencing the major bout of panic selling include weak economic data from the United States and Asia, and a big sell-off in tech stocks after weaker-than-expected earnings reports from major tech giants and retailers.

Analyst and trader Rekt Capital observed that the Bitcoin CME gap has now been filled, which could lead to a slowdown in the bleeding.

#BTC

Bitcoin downside reached ~$57500

Therefore, Bitcoin has completely filled the CME gap

The bottom of the CME gap was $57885$BTC #Crypto #Bitcoin https://t.co/MS4YJtPsqY pic.twitter.com/HEOE8IPFH0

— Rekt Capital (@rektcapital) August 4, 2024

Elsewhere on Crypto Markets

Bitcoin fell to $52,600 during trading in Asia on Monday morning, its lowest level since late February. The asset has now corrected 27% from its all-time high in mid-March.

This weekend’s massive market drop was the biggest since mid-2022, when markets melted down in the wake of the Earth/Moon collapse.

More than half a trillion dollars have left the crypto space in the past week, as the total capitalization fell by 22%.

Also, the bleeding has not stopped at the time of publication.

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