Ethereum Sees Most Liquidations in Panic Selling

With the price of Bitcoin crashing to $55,000, panic selling in the altcoin market remains even more pronounced. Ethereum and nearly all of the top ten altcoins have fallen between 10 and 20% with the ETH Price losing the crucial support of $3,000.

Altcoin Market Crash, Ethereum Faces Most Liquidations

In a significant upheaval in the cryptocurrency market, 221,704 traders were liquidated in the last 24 hours according to data from Coin glassThe largest single order liquidation occurred on Binance in the ETH/USDT trading pair, worth $18.48 million.

On the hourly chart, Ethereum liquidations have surpassed those of Bitcoin also. In the last hour, the total Ethereum Liquidations rose to $44.5 million, while ETH liquidations in 24 hours are at $107 million. Liquidations for other altcoins have also increased significantly.

Despite all the developments that suggest a Spot Ethereum ETFs As of late July, the price of ETH has reacted negatively and is largely in line with the broader market correction.

Ethereum developer Anthony Sassano has weighed in on the current ETH glut, pointing to potential outflows from Grayscale’s ETHE. Sassano noted that ETHE has been trading at a discount of less than 2% for months and is now at a premium, raising questions about how many investors are waiting for it to convert to an ETF before selling.

Sassano also highlighted the uncertainty surrounding ETHE’s fee structure after the conversion. He suggested that fees could be much lower than expected or even temporarily waived to attract investors to Grayscale’s mini-trust.

Read also: Ethereum Surpasses Bitcoin 2X in Network Fee Revenue

FUD Reaches Historic Highs

As the cryptocurrency market continues to decline with greater intensity, there is a lot of fear, uncertainty, and doubt (FUD) on social media platforms. On-chain data provider Santiment reported that “sell” mentions have outnumbered “buy” mentions with every passing hour.

There have been several instances of this trend in the last 24 hours, with the ratio of negative to positive comments reaching its highest level in 2024. Santiment suggests that for bold traders, this period of elevated negativity could be an opportunity to adopt a contrarian strategy and buy the market amid widespread anger and frustration.

Courtesy: Holiness

Among altcoins, the entire memecoin sector has fallen even more severely, with all major memecoins losing between 17 and 25%. It will be interesting to see if these meme coins bounce back or if this is the end of the meme coin craze.

Read also: Ethereum Whale Risks Liquidation, ETH Price Crashes

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