Ethereum
Why is Ethereum down today despite spot ETF debut?
- ETH fell 8% despite remarkable debut of US ETH spot ETF.
- Analysts have mixed views on the downward pressure on ETH.
Ethereum [ETH] fell more than 7% in intraday trading on July 24, following a broad collapse in U.S. stocks that wiped out more than $1 trillion in value.
Amid the market crash, the largest altcoin, which consolidated below $3,500 before and after the debut of the US ETH spot ETF, has moved closer to the $3,000 mark.
Source: Coin360
It is interesting to note the remarkable performance of ETF ETH The last few days haven’t stopped Ethereum’s price from falling massively. So why is Ethereum down?
Market observers had mixed opinions on the drop. HsakaA renowned altcoin trader and market analyst, the US stock market crash could have pushed ETH prices lower.
“Ethereum finally integrates with TradFi. In 24 hours, Nasdaq had its worst close in 2 years, $1.1 trillion was wiped off the US stock market today.”
However, the drop was not entirely unexpected, according to Charles Edwards, founder of crypto hedge fund Capriole Investments. Edwards argued that the ETH ETF was “bad” for Bitcoin and ETH.
“The ETH ETF launch was bad for BTC and ETH. ETH has been stagnant throughout this cycle, and now the ETF launch has muddied the waters at the institutional level.”
Ethereum dump triggers $100 million in liquidations
The 7% drop triggered over $100 million in liquidation over the past 24 hours, with leveraged bulls suffering the most.
According to Coinglass data, $97.5 million worth of long positions were closed, while bears only experienced one incident, worth around $4.15 million.
Source: Coinglass
In addition, at the time of going to press, the main derived signalsopen interest (OI) volume were in the red, highlighting the bearish sentiment on the futures side of the market.
This means that the price of ETH could decline over the weekend if negative market sentiment persists.
If downward pressure continues, a retest of $3,000 could be likely. The psychological level has been a key demand zone in 2024 and has been defended on past declines.
A daily candlestick close below the 20-day simple moving average (SMA) could accelerate a decline to the $3,000 demand level.
Source: ETH/USDT, TradingView