Ethereum price fell sharply because investors sold their crypto assets all at once across the market. Ethereum dropped significantly in one day making it the highest drop in several years driving market traders to sell their positions.
Long-position traders saw the deepest losses when prices dropped sharply. Despite recent market struggles analysts find value in a crucial support position that suggests a turnaround may be coming.
Market Liquidations Surpass $2.22 Billion
Notably, many investors sold their crypto assets quickly hence prices dropped in every crypto market segment. Based on the CoinGlass data, trader withdrawals hit a daily peak of $2.22 billion.
Ethereum traders who held long positions suffered $605 million in trading loss during the price drop.
Bitcoin, XRP, Solana, and Dogecoin joined the market sell-off with major price declines. Bitcoin experienced a 6% reduction and XRP and Dogecoin lost 22% and 23% respectively. Markets slid further when investors panicked and sold their leveraged bets instantly.
Ethereum Price Reaches Key Long-Term Support
More so, the Ethereum price dipped to reach an essential long-term support mark which historically impacted its price movement. Analysts utilized a logarithmic regression trendline to indicate that ETH had achieved a price position which typically leads to recovery phases.
A significant Ethereum market correction occurred in 2021, comparable to the recent decline in price. After its price decrease the asset recovered to set record-breaking values near $5000. Several analysts are tracking the possibility that Ethereum prices could bounce back in upcoming weeks.
Analysts Predict Potential Rebound Above $3,000
Market observers remain divided on Ethereum’s next move, but some analysts anticipate a price recovery. IncomeSharks, a crypto trader, describes the present market levels as a favorable condition because ETH could surpass $3,000 if bulls return to the market.
Max Schwartzman, CEO of the crypto education platform BecauseBitcoin, also expressed optimism, noting that patient holders could see rewards if the market stabilizes. However, the overall sentiment remains cautious, with traders assessing macroeconomic factors that may influence Ethereum price near term.
ETH Price plunged 20% in 24 hours.
Ethereum price witnessed a sharp decline, falling to $2,200 as the cryptocurrency market experienced a broad sell-off. The asset recorded a 20% drop in 24 hours, marking its most substantial single-day loss in nearly four years.
Meanwhile, Trump’s World Liberty Financial has been accumulating ETH, showing bullish sentiment despite recent market uncertainty. The organization reportedly purchased over $10 million worth of Ethereum as the price retested short-term support near $3,050.
Large holder flows also bounced back, indicating that whales are buying the dip. However, overall spot flows remain negative, suggesting that demand is still recovering.
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