Key Points
- Ethereum (ETH) experienced a 7% drop amidst a broader US equities market crash.
- The drop triggered over $100 million in liquidations, with leveraged bulls hit hardest.
Despite the recent successful launch of the US spot ETH ETF, Ethereum (ETH) saw a significant 7% drop in value during the intraday trading session on 24th July. This drop was in line with a larger market crash in US equities that reportedly led to over $1 trillion in losses.
The Market’s Mixed Response
The drop in Ethereum’s price occurred despite its recent consolidation below the $3.5k mark. This price movement brought the cryptocurrency closer to the $3000 mark, even as the ETH ETF performed well. Market analysts have offered mixed opinions on this downward trend.
Noted altcoin trader and market analyst, Hsaka, suggested that the crash in the US stock market could have influenced the drop in Ethereum’s price. However, Charles Edwards, founder of Capriole Investments, argued that the launch of the ETH ETF was detrimental to both Bitcoin and Ethereum.
Impact of the Drop
The 7% drop in Ethereum’s value led to over $100 million in liquidations within 24 hours. Leveraged bulls were the most affected, with long positions worth $97.5 million liquidated. In contrast, bears experienced only a minor impact, with losses amounting to about $4.15 million.
As of the time of reporting, key derivatives indicators, including volume and open interest rates, were in the red. This suggests a bearish sentiment in the futures market, which could potentially keep Ethereum’s price subdued going into the weekend.
If the downward pressure continues, Ethereum could retest the $3000 mark. This level has been a key demand zone in 2024 and has been defended during past dumps. A daily candlestick close below the 20-day Simple Moving Average (SMA) could potentially accelerate a drop to this $3k demand level.
