The ongoing crypto correction led by Ethereum triggered nearly $300 million in liquidations, mostly involving long traders.
The total crypto market cap declined nearly 4 percent in the last 24 hours, led by Ethereum (ETH), to hover around $2.42 trillion on Thursday during the early European session. Ethereum’s price dropped as much as 8 percent to a daily low of about $3,156 in the past 23 hours but has since rebounded to around $3,184 at the time of this writing.
The sudden Ethereum drop, which impacted the entire crypto industry, resulted in liquidations of nearly $260 million from long traders. Notably, Ethereum traders were the most impacted with a total of $101 million closely followed by Bitcoin (BTC) with about $83 million in total liquidations.
Poor Performance in US-based Spot Ethereum ETFs
The Ethereum price was heavily weighed down by the notable net cash outflows from the recently approved US-based spot Ether ETFs. On Wednesday, the US-based spot Ether ETFs registered a net cash outflow of about $133 million, thus bringing the net cash outflow to about $26 million.
The Grayscale Ethereum Trust (ETHE), which has about $8.04 billion in net assets, registered a total cash outflow of around $326.86 million. As a result, the ETHE has lost around $810 million since trading began earlier this week.
However, the Grayscale Ethereum Mini Trust (ETH) registered a net cash inflow of about $45.93 million on Wednesday, thus holding about $61.08 million in net assets under management
In the past 24 hours, #Grayscale transferred 140,044 $ETH($485.6M) to #CoinbasePrime, and received 4,382 $ETH($14.8M) from #CoinbasePrime, with a net outflow of 135,662 $ETH($470.8M)!
According to #Grayscale's website, #Grayscale currently holds 2,489,075 $ETH($7.9B).… pic.twitter.com/2LYaRinh4h
— Lookonchain (@lookonchain) July 25, 2024
The best performance was achieved by the Fidelity Ethereum Fund (FETH), which recorded about $74.46 million.
The Bitwise Ethereum ETF (ETHW) registered a net cash inflow of about $29.64 million, thus bringing the total assets under management to around $233 million.
Meanwhile, BlackRock’s iShares Ethereum Trust ETF (ETHA) received around 76,699 Ether, worth about Coinbase Prime.
What’s Next for ETH Price Action
The entire crypto market was heavily impacted by the major US stock liquidation of around $1.1 trillion in the past 24 hours. Ethereum price could, therefore, continue dropping in the near term. Moreover, Ether’s price has slipped below the 50 and 200 daily Moving Averages (MAs).
$ETH CHART $ETH has not looked this bullish in a long time
This is the pull back to make sure you are in if you are a $ETH believer , There is 2 major zones to buy . First Zone has been hit , 2nd might get hit , possibility it won't . $ETH to 4K in the next week or two . These… pic.twitter.com/PJL3zObgvP— Sheldon The Sniper (@Sheldon_Sniper) July 24, 2024
According to a popular crypto analyst alias Sheldon The Sniper, ETH price could find a solid bottom around $3,097, which coincides with the 0.618 daily Fibonacci retracement. The crypto analyst highlighted that Ethereum’s price could be forming a major bullish outlook with a midterm target of about $4,017.
From a technical standpoint, Ethereum price has already established a solid support level around $2,869, which could hold in case the US-based spot Ether ETFs continue to bleed in the coming weeks.
Meanwhile, it is prudent to keep in mind that the US Fed will be releasing its interest rate benchmark on Wednesday, next week.
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