Altcoins News

Story: Ethereum Price Plunges 20% as $1B Liquidations Rock Crypto Market

By Pankaj K

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Ethereum Suffers Steep Two-Day Decline. After trading close to $4,000 on Monday, Ethereum fell sharply to around $3,000 by late Tuesday…

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$1 Billion in Liquidations as Leverage Unwinds. According to CoinGlass data, over $970 million in leveraged Ethereum positions were liquidated…

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Institutional Buyers Step Back. Markus Thielen, head of research at 10x Research, said in a Tuesday note that Ethereum’s breakdown…

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ETF Demand and Retail Interest Collapse. Another factor driving the decline is the sharp drop in Ethereum ETF inflows.

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Analyst Outlook: More Downside Possible. With most of the bullish catalysts from earlier in the year now gone — including ETF optimism,…

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Market Sentiment Turns Defensive. The latest downturn comes as macroeconomic uncertainty weighs on risk assets, including…

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Ethereum (ETH) extended its steep decline this week, falling more than 20% in just two days and triggering nearly $1 billion in liquidations across leveraged derivatives markets.

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After trading close to $4,000 on Monday, Ethereum fell sharply to around $3,000 by late Tuesday afternoon — its lowest level since mid-July.

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Market data from CoinDesk shows ETH was last seen hovering near $3,200 after a brief rebound, still down nearly 10% in the past 24 hours.

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Analysts say the magnitude of these liquidations reflects excessive leverage in the market, where traders had become overly optimistic following Ethereum’s summer rally toward…

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Markus Thielen, head of research at 10x Research, said in a Tuesday note that Ethereum’s breakdown has exposed a lack of institutional support at current levels.

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Thielen estimates BitMine’s average purchase price at roughly $3,900 per token, putting the firm’s unrealized losses near $2 billion.

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“The real question is: who will step in as the next major buyer of ETH now that BitMine has seemingly used up its firepower?” Thielen noted.

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Another factor driving the decline is the sharp drop in Ethereum ETF inflows. During July and August, institutional investors poured nearly $9.

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However, since the October crash, inflows have all but dried up. Thielen noted that only $850 million has exited ETH ETFs since mid-October — suggesting there may be more selling…

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