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.
It is the lowest price ETH has seen since early January, and it is the worst-performing asset in the crypto top 15 by market cap.
ETH Gets 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 reclaimed $2,300 at the time of writing as markets had slowed their free fall.
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 blamed partly on a selloff by Jump Crypto, as the trading firm has offloaded hundreds of millions of dollars in assets over the past few days.
Jump Trading is selling 120,695 $wstETH($481M) and has sold 83K $wstETH($377M) since July 24, leaving 37,604 $wstETH($104M).
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
— Lookonchain (@lookonchain) August 5, 2024
Ethereum advocate Anthony Sassano said that the firm exiting the crypto space could be one of the most bullish things to happen in a long time.
“They’ve been a complete parasite on crypto for years and the industry will be much better off without them.”
Other factors influencing the big bout of panic selling include weak economic data out of the United States and Asia, and a big 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 bleeding.
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
— 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 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.
More than half a trillion dollars has left the crypto space over the past week as total capitalization plunged 22%.
Moreover, the bleeding has yet to stop at the time of publishing.
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