Ethereum Drops By 3% in Fresh Crypto Selloffs
Ethereum (ETHUSD) fell by 3.20% to $3,161.76 in the past 24 hours, underperforming the broader crypto market’s 2.56% decline, despite a 6.06% gain over the previous week.
The second-largest crypto asset dipped as investors liquidated long positions, reflecting sustain sentiment volatility after an initial climb.
Trading data from CoinMarketCap.com showed that Ethereum trading volume declined by 4% to $26 billion in the last 24 hours as institutional investors took profit on Wednesday.
The 24h drop stemmed from a leverage flush, technical exhaustion after gains, and Bitcoin-centric capital rotation – though ETH’s structural strengths remain intact.
Meanwhile, Bitcoin dominance rose to 58.31%, up by 0.13% in 24h, while the Altcoin Season Index remained at 23. Spot volumes for ETH fell 1.34% despite rising 47.1% for crypto overall.
Over $200 million in ETH long positions were liquidated within 24 hours, per derivatives data. This coincided with a 24.42% drop in perpetual open interest, indicating rapid deleveraging.
Cryptocurrency analysts said high leverage amplifies sell-offs when prices dip – margin calls force traders to sell holdings or add collateral, creating cascading downward pressure.
The market record indicates that ETH’s 24h liquidation volume was 2.5× higher than BTC’s, explaining its relative underperformance.
ETHUSD’s 14-day RSI hit 68.6 – nearing overbought territory after a 6.06% weekly rally. Simultaneously, it breached the $3,200 psychological support level.
Meanwhile, Morgan Stanley filed for a spot Ethereum ETF that automatically stakes a portion of holdings to generate yield, with rewards reinvested to grow net asset value.
This follows their Bitcoin and Solana ETF filings earlier in the week, marking the first major US bank to directly offer staking rewards in a regulated fund.
This is bullish for Ethereum because it combines institutional-grade access with yield generation, potentially attracting conservative investors deterred by self-custody staking complexities. Staking utilization could rise from the current 29% of supply as ETFs automate participation
#Ethereum Drops By 3% in Fresh Crypto Selloffs Bitcoin Resisted at $94 with ETF Outflow, Profit-taking
