Ethereum’s market has shown a declining trend. Most striking was however the rapid movement of this digital asset within the last 24 hour. Ethereum, which was holding above $2,000 had succumbed under the pressure of bears. It lost about 20% in one day, pushing it back to the $1600 level. This was a result of massive selling.
Ethereum investors want out
In the past week, investors in Ethereum, the second largest cryptocurrency market capital, have been liquidating quickly their holdings. While this process has been long and complicated, few could have anticipated the severity of the market’s calamities. Following the leading cryptocurrency, Bitcoin, the value of Ethereum has plunged significantly but even more interesting is the amount of sell-offs that are causing the digital asset’s price to crash.
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Ethereum’s exchange inflowIt has reached a 3-month peak. Investors are liquidating as much as they can, this indicates. It is currently at $38,873,883.27. That’s a three month high, surpassing the record set on May 5th 2022.
Also, on a daily base, it has increased by exceeded expectations and continues to rival outflows. Glassnode currently reports that ETH’s daily inflows & outflows total $1.6 billion. This is a positive net flow value of $30.8 million. It means that inflows will continue to outpace outflows.
Investors holding digital assets are also making similar decisions to traders. Coinglass reports that Ethereum liquidations are at an all-time high, with some reaching as high as $350,000,000 in just 24 hours.
Ethereum below $2,000| Source: ETHUSD on TradingView.com
It is also mirrored by the ETH futures market. On Binance, the leading cryptocurrency exchange, liquidations have reached an all-time high of $6,000,000 in six months. Glassnode observed that while the prior six-month peak was at $3,882,796.27 it now stands at $4,393,678.09
More Bad News
All angles of the Ethereum indicators indicate a bear. These indicators are a sign of a bear from all angles. amount of supply last active on a 24-hour moving averageAccording to reports, the market has reached a 5-month record. It currently holds 1,083,569.884 active ETH as of last day. Investors are likely to be selling more of their ETH to the exchanges.
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According to reports, open interest in perpetual contracts for futures has also reached a new 9 month mark on Bybit. This is in addition to a 19-month low at Bitmex.
The cryptocurrency continues trading in the red. ETH currently trades for $1,900 at the time this is written. It’s currently sitting at a total market cap of $229 billion, the lowest it has been in 10 months.
Featured Image from CYBAVO chart by TradingView.com