Ethereum Crashes By 18% Amid $2.3 Billion Crypto Liquidation Storm
Ethereum's price dropped over 17% to lows near $2,135, driven by significant liquidations amounting to over $2.3 billion across the crypto market. The liquidation primarily affected long positions, with about $1.9 billion of total liquidations captured in the crash. Ben Zhou, co-founder of crypto exchange Bybit, estimated that the actual liquidation could exceed $8-10 billion due to API limitations on several exchanges. Ethereum's volatility metrics surged drastically, highlighting the panic among traders as the cryptocurrency market reacted sharply to U.S. economic concerns and geopolitical tensions. This decline is notable as it mirrors Ethereum's largest intraday loss since May 2021, when the asset also experienced severe volatility. The market sentiment has turned fearful as macroeconomic factors weigh heavily on risk assets, raising questions about Ethereum's performance in comparison to Bitcoin and other cryptocurrencies. Analysts indicate that the crash emphasizes Ethereum's susceptibility to broader market forces and reflects on its declining trend in favorability among traders.
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