Ethereum Tumbles To 10-Month Lows As Sell-Offs Intensifies
Ethereum has been on a downward trend with the rest of the market. Most notable though had been the movement of the digital asset in the last 24 hours. Ethereum which had been holding up above the $2,000 level had finally succumbed to pressure from bears. This saw it lose about 20% of its value in a day and had effectively pushed it back toward the $1,600 level. The push behind this remains the same; massive sell-offs.
Ethereum Investors Want Out
Investors in the second-largest cryptocurrency by market cap, Ethereum, have been rapidly liquidating their holdings in the last week. This has been a long time in the making but no one could have truly anticipated how bloody the market would get. Following the leading cryptocurrency, Bitcoin, the value of Ethereum has plunged significantly but even more interesting is the amount of sell-offs that are causing the digital asset’s price to crash.
Related Reading | Bitcoin Selloff Provides Boost To Miner Fee Revenues
Ethereum’s exchange inflow has now touched a three-month high. It indicates that investors are liquidating their holdings as fast as they can. The exchange inflow volume on a 7-day moving average for ETH now sits at $38,873,883.27, beating the previous three-month high that had been recorded on May 5th, 2022.
On a daily basis, this number has also exceeded expectations and continues to rival outflows. Glassnode reports that ETH daily inflows and outflows currently sit at $1.6 billion each, with a positive net flow of $30.8 million, meaning that inflows remain ahead of outflows.
Elsewhere, traders are taking the same decisions as investors holding the digital asset. Liquidations have been on a high lately with Coinglass reporting that Ethereum liquidations have touched as high as $350 million in a single 24-hour period.
Ethereum falls below $2,000 | Source: ETHUSD on TradingView.com
This is also mirrored by the ETH futures market. The liquidations in this part of the market have now reached a new six-month high on leading crypto exchange Binance. The previous six-month high had been recorded at $3,882,796.27 but presently, this number sits at $4,393,678.09 as observed by Glassnode.
Even More Bad News
Ethereum indicators show signs of a bear from all angles. The amount of supply last active on a 24-hour moving average is reported to have reached a new 5-month high, currently sitting at 1,083,569.884 ETH active on the last day. This indicates that investors are moving more of their ETH, presumably to exchanges to sell off.
Related Reading | Bitcoin Funding Rates Remain Unmoved Despite Plunge To $30,000
Open interest in perpetual futures contracts is also reported to have reached a new 9-month for the digital asset on Bybit and a 19-month low in Bitmex.
The digital asset continues to trade in the red. At the time of this writing, ETH is trading at a price of $1,900. It’s currently sitting at a total market cap of $229 billion, the lowest it has been in 10 months.
Featured image from CYBAVO, chart from TradingView.com
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