Coin Realm reports:
With Bitcoin’s price plummeting to $55,000, panic selling in the altcoin market has become increasingly evident. Ethereum and nearly all of the top ten altcoins have plummeted 10-20%, with ETH’s price losing the crucial support level of $3,000.
Altcoin Market Crashes, Ethereum Faces Majority Liquidation
Amid significant turmoil in the cryptocurrency market, data from Coinglass indicates that 221,704 traders were liquidated in the past 24 hours. The largest single liquidation order occurred on Binance’s ETH/USDT trading pair, valued at $18.48 million.
Hourly charts reveal that Ethereum’s liquidation amount has also surpassed Bitcoin’s. In the past hour, Ethereum’s total liquidation amount soared to $44.5 million, while ETH’s 24-hour liquidation amount stood at $107 million. Liquidation amounts for other altcoins also saw a significant increase.
Despite all developments hinting at the launch of an Ethereum spot ETF by the end of July, ETH’s price reacted negatively, aligning with the broader market’s adjustment.
Grayscale’s ETHE may experience capital outflows. ETHE has been trading at less than a 2% discount for months and is now in a premium state, raising questions about how many investors are waiting to sell after its conversion to an ETF.
Uncertainty in ETHE’s fee structure post-conversion. Fees could be much lower than expected, or even temporarily waived, to attract investors to Grayscale’s mini trusts.
Fear and Uncertainty Reach Historical Highs
As the cryptocurrency market continues to plummet, social media platforms are flooded with immense fear, uncertainty, and doubt (FUD). On-chain data provider Santiment reports that mentions of “sell” per hour have exceeded those of “buy.”
This trend has occurred several times in the past 24 hours, with the ratio of negative to positive evaluations reaching the highest level since 2024. Santiment believes that for bold traders, this period of intensified negative sentiment could be an opportunity to adopt a contrarian strategy and buy into the market amidst widespread anger and frustration.
In the altcoin sector, the entire memecoin domain saw even larger declines, with all top memecoin dropping between 17-25%. It will be interesting to see if these memecoins will rebound or if this marks the end of the memecoin frenzy.
ETH Price Drop Triggers Liquidation
Ethereum whales face liquidation, with ETH falling 10.42% this week. The sell-off of Bitcoin and Ethereum has dampened market sentiment.
However, as Ethereum’s price continues to fall, a large number of Ethereum whales are on the brink of liquidation.
Potential liquidation of Ethereum whales could have a profound impact on the market.
If Ethereum’s price falls to the critical level of $2,984, further sell-offs may occur.
This could exacerbate the current downward trend and lead to more liquidations.
The ongoing sell-off pressure on Bitcoin also affects the overall market sentiment.
Further downward pressure will result from major holders and governments liquidating assets.