Massive Ethereum Sell-Off! What You Need to Know About Today’s Price Crash

Why the Ethereum Price Is Falling Today

Highlights

• A large Ethereum whale recently sold 10,000 ETH on Kraken, earning $173 million in profits.
• Mt. Gox distributions are putting pressure on Bitcoin and the overall crypto market.
• Analysts predict two weeks of downward movement before the ETH uptrend resumes.

Ethereum Price Drop

One day after the successful launch of the spot Ethereum ETF, the Ethereum price has dropped significantly, losing over 8% to fall to $3,150. This decline has led to substantial liquidations of long positions in Ethereum over the past 24 hours.

Ethereum Liquidations Surge

According to data from Coinglass, the total Ethereum liquidations in the last 24 hours have surpassed those of Bitcoin. Ethereum liquidations currently stand at $97.8 million, compared to Bitcoin’s $80.9 million.

Of the total ETH liquidations, $94.4 million were long liquidations, with only $43.3 million in short liquidations. Most of these liquidations occurred in the past 4 hours, indicating massive selling pressure on the Ethereum price.

The approval of the spot Ethereum ETF appears to have turned into a “sell-the-news” event, similar to what happened with Bitcoin earlier this year. With the ETH price reaching up to $3,500 in July, investors seem to be cashing out from the hype around the ETF approval.

Large Ethereum Whale Sells ETH

On-chain data shows that a large Ethereum whale sold their coins on Wednesday, July 24. According to data from Spot on Chain, this whale made $173 million in profit by depositing 10,000 ETH on Kraken, worth $34.2 million, just before the Ethereum price drop.

This whale had withdrawn 96,639 ETH from Coinbase at $1,580 each in September 2022. Since March this year, the whale has moved nearly 40,000 ETH to Kraken. The whale still holds a remaining balance of 56,639 ETH, valued at $188 million at the current ETH price.

Additionally, 10xResearch noted that the current Mt. Gox distributions are putting pressure on the broader crypto market. “If this trend continues, crypto will need more support to rally. Ethereum might be the weakest link, with fundamentals (new users, revenues, etc.) being stagnant or lower,” stated 10x Research.

Ethereum Price Reversal Expected

Popular crypto analyst Michael van de Poppe stated that the ETH price might see some reversal amid strong outflows from the Grayscale Ethereum Trust. ETH might experience two weeks of downward movement before resuming the rally to new all-time highs. According to the chart, Ethereum could be taking support around $3,150 before resuming upward gains.