Ethereum was in a downtrend along with the rest of the market. Most notable was the movement of digital assets in the last 24 hours. Ethereum that was holding above the $2000 level has finally succumbed to the pressure of the bears. This resulted in a loss of about 20% of its value in one day and effectively pushed it towards the $1600 level. The motive for this remains the same; Intense selling.
Ethereum investors want to get out
Investors in the second largest cryptocurrency by market capitalization, Ethereum, quickly liquidated their holdings last week. This has been a long time in the making, but no one really expected how bloody the market would turn out to be. After the leading cryptocurrency, Bitcoin, the value of Ethereum plummeted but what is most interesting is the amount of selling that caused the price of the digital asset to crash.
Related reading | Selling Bitcoin Provides Boost to Miners’ Fee Revenue
Ethereum exchange flow It has now touched a three-month high. It indicates that investors are liquidating their holdings as quickly as possible. Exchange flow volume on the 7-day moving average of ETH is now sitting at $38,873,883.27, surpassing the previous three-month high recorded on May 5, 2022.
On a daily basis, that number has it too Exceeded expectations and continued to compete with outflows. Glassnode reports that ETH currently has daily inflows and outflows of $1.6 billion each, with a net positive inflow of $30.8 million, meaning that inflows are still ahead of outflows.
Elsewhere, traders make the same decisions as investors who own the digital asset. Liquidations have been on the rise lately with Coinglass It is reported that Ethereum liquidations touched as much as $350 million in a single 24-hour period.
Ethereum falls below $2,000 | Source: ETHUSD on TradingView.com
Also this Reflected by the ETH futures market. Liquidations in this market segment have now reached a new six-month high on leading cryptocurrency exchange Binance. The previous six-month high was recorded at $3,882,796.27 but currently, that number is sitting at $4,393,678.09 as noted by Glassnode.
More bad news
Ethereum indicators are showing bear signs from all angles. The Active 24 hour supply quantity in a moving average It reached a new 5-month high and is currently at 1,083,569.884 ETH active on the last day. This indicates that investors are moving more ETH, likely to exchanges for sale.
Related reading | Bitcoin funding rates remain unchanged despite dropping to $30,000
It was also reported that open interest in perpetual futures reached a new 9-month low for Bybit’s digital asset and a 19-month low for Bitmex.
The digital asset continues to trade in the red. At the time of writing, ETH is trading at $1,900. The company’s total market capitalization is currently $229 billion, the lowest in 10 months.
Featured image from CYBAVO, chart from TradingView.com