In a significant downturn, Ethereum (ETH) has experienced a 9% price drop over the past 24 hours, leading the cryptocurrency market in liquidations totaling approximately $700 million.
Key Points:
- Ethereum Price Decline: ETH’s value has fallen to around $3,360, levels last seen in mid-November.
- Market Liquidations: The crypto market has witnessed liquidations exceeding $700 million, with Ethereum accounting for over $152 million.
- Institutional Movements: Significant ETH sales by whales and institutions, including the Ethereum Foundation’s first sale of 2025, have contributed to the downturn.
Ethereum Leads Crypto Liquidations
Data from Coinglass indicates that Ethereum has led the market in liquidations, with over $152 million liquidated in the past day, predominantly from long positions. In comparison, Bitcoin (BTC) saw liquidations totaling $128 million. The largest single liquidation occurred on Binance, involving an ETH position valued at $17.74 million.
Whale and Institutional ETH Sales
Large-scale ETH transactions have been reported, signaling a reduction in holdings by major investors. Notably, a transfer of 40,000 ETH (approximately $140.44 million) from Arbitrum to Binance was observed. Additionally, Cumberland moved 18,172 ETH (around $66 million) to Coinbase Institutional. These movements suggest a strategic offloading of ETH by significant market players.
Ethereum Foundation’s Strategic Sale
The Ethereum Foundation executed its first ETH sale of 2025, exchanging 100 ETH for 329,463 DAI. Historically, such sales by the Foundation have preceded notable price declines, indicating a potential strategic approach to market timing.
Spot Ethereum ETFs Experience Net Outflows
Institutional confidence appears shaken, as evidenced by a net outflow of $86.8 million from spot Ethereum ETFs. Outflows were primarily from Fidelity’s FETH and Grayscale’s ETHE funds. ETF flows are often considered indicators of asset strength, and such outflows may reflect shifting investor sentiment.
Market Outlook
Currently trading at approximately $3,360, Ethereum shows limited signs of immediate recovery. Derivatives data reveals a 7% drop in open interest for ETH futures, now valued at $30.33 billion, while options open interest has increased as traders adjust their positions.
Analysts advise caution, emphasizing the importance of monitoring key support levels. Some suggest that maintaining a position above $3,200 could be crucial for potential recovery, while others recommend observing market movements before making trading decisions.
Conclusion
Ethereum’s recent price decline underscores the volatility inherent in the cryptocurrency market. Factors such as large-scale liquidations, significant sales by institutional investors, and strategic moves by the Ethereum Foundation have all contributed to the current market dynamics. Investors are advised to stay informed and exercise caution during this period of heightened market activity.
