Ethereum Drops to $2,000 Amid Selling Pressure
Key Takeaways
Ethereum (ETH) has dropped to $2,000 – its lowest level since November. The 15% price decline was triggered by massive sell-offs from large investors (whales). Despite Ethereum being included in strategic reserves, the downward trend could not be stopped. Market indicators suggest a continued selling wave, making a further drop to $1,900 seem possible.
Ethereum Price Plummets: Causes and Consequences
ETH has lost 15% of its value in a short period, falling to $2,000. The market is showing extreme uncertainty, and selling activities by large investors have further pressured the price. Ethereum ETFs (Exchange Traded Funds) also recorded significant outflows – totaling $51.36 million.
A possible reason for the recent volatility is a tweet from Donald Trump about a potential strategic reserve for cryptocurrencies. This initially led to an increase in the total crypto market capitalization to $3 trillion. However, the market quickly corrected, losing $220 billion within 24 hours.
On-Chain Data Shows Weak Demand
Blockchain analysis data suggests that institutional investors currently show little interest in Ethereum. The Coinbase Premium Index (CPI), an indicator of demand from U.S. investors, remains negative. At the same time, ETH balances on exchanges are increasing, indicating continued selling pressure.
Trading volume has also decreased by 5.50%. These factors suggest that there are currently few buyers capable of stabilizing the price. If market conditions do not change, a further decline to $1,900 remains likely.
Liquidity Issues Intensify the Downtrend
Another factor contributing to the price decline is high liquidations. In recent days, ETH long positions worth $168.13 million have been liquidated. This coincided with an increase in selling liquidity, further amplifying selling pressure.
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Open interest (OI) in the futures market initially rose by 10% to $21.11 billion. However, a sudden drop of 8.39% indicates that many traders quickly closed their positions – either to limit losses or secure profits.
Market Sentiment Remains Crucial
In addition to technical factors, overall market sentiment also plays a role. If Bitcoin (BTC) shows a strong recovery, this could help stabilize Ethereum. However, extreme fear currently dominates the market, and many investors are holding back on purchases.
If demand does not recover soon, ETH remains vulnerable to further declines. Should the price stay below $2,000, a move toward $1,900 could be the next logical development.
Our Assessment
Ethereum is at a critical juncture. Strong selling pressure and weak demand indicate that further declines are possible. In the short term, the market remains volatile, and investors should closely monitor developments.
If buying interest does not recover, ETH could continue to fall. However, in the long term, Ethereum remains a key player in the crypto market, particularly due to its role in DeFi (decentralized finance) and smart contracts.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $2,135.56 |
| 24h % | -4.64 % |
| 7d % | -11.99 % |
| 30d % | -28.10 % |
| 60d % | -40.27 % |
| 1y % | -39.83 % |
| Market Cap | $257,408,047,867.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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