In the past hour, Ethereum liquidations have exceeded those of Bitcoin. The price of ETH has dropped below the important $3,000 mark as fear and uncertainty in the market hit new highs.
Bitcoin’s price has also plummeted to $55,000, causing even more panic selling in the altcoin market. As a result, Ethereum and almost all of the top ten altcoins have crashed, losing between 10-20% of their value.
Major Shakeup in the Crypto Market: Ethereum Hit Hard by Liquidations
In a significant shakeup in the crypto market, 221,704 traders were liquidated in the past 24 hours, according to data from Coinglass. The largest single liquidation order took place on Binance in the ETH/USDT trading pair, valued at $18.48 million.
On the hourly chart, Ethereum liquidations have also exceeded those of Bitcoin. In the past hour alone, total Ethereum liquidations have surged to $44.5 million, while 24-hour ETH liquidations stand at $107 million. Liquidations for other altcoins have also increased significantly.
Despite ongoing developments suggesting a spot Ethereum ETF could arrive by the end of July, the ETH price has reacted negatively, aligning with the broader market correction.
Ethereum developer Anthony Sassano shared his views on the current market conditions for ETH, pointing to potential outflows from Grayscale’s ETHE. Sassano noted that ETHE has been trading at a discount of less than 2% for months and is now at a premium, raising questions about how many investors are waiting for its conversion to an ETF before selling.
Sassano also highlighted the uncertainty surrounding ETHE’s fee structure post-conversion. He suggested that fees could be much lower than anticipated or even waived temporarily to attract investors to Grayscale’s mini-trust.
Crypto Market Decline Sparks Major FUD on Social Media
As the crypto market continues to decline with increasing intensity, fear, uncertainty, and doubt (FUD) are rampant across social media platforms. On-chain data provider Santiment has reported that “sell” mentions are now outnumbering “buy” mentions every hour.
In the past 24 hours, there have been several instances of this trend, with the ratio of negative to positive comments reaching its highest point in 2024. Santiment suggests that for bold traders, this period of heightened negativity could be an opportunity to adopt a contrarian strategy and buy into the market amidst widespread anger and frustration.
Crypto-Market-FUD. Courtesy: Santiment
Among the altcoins, the entire memecoin sector has suffered even more severely, with all of the top memecoins losing between 17-25%. It will be interesting to see whether these memecoins bounce back or if this marks the end of the meme coin mania.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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