Ethereum’s (ETH-USD) price has nosedived from over $3,000 to under $2,200, primarily due to a massive sell-off by major market makers. Since August 3, these traders have unloaded a jaw-dropping 130,000 ETH, totaling about $290 million. Market makers like Wintermute, Jump Trading, and Flow Traders have led the charge. Wintermute, for instance, has offloaded more than 47,000 ETH.
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The Great Ethereum Exodus
According to a research note from 0xScope shared with Cointelegraph, “Jump Trading started dumping $ETH this past weekend, ahead of other major market makers, despite low liquidity.” As these big players flood the market, Ethereum struggles to stay above the crucial $2,200 mark, fueling investor anxiety and fears of further declines.
Ethereum ETF Launch Fizzles
Adding to the chaos is the recent debut of U.S. spot Ether ETFs on July 23. Despite this milestone, these ETFs have faced a net outflow of over $511 million. Eric Balchunas from Bloomberg told Cointelegraph, “Bitcoin is like enough crypto hot sauce. You’re like, ‘You know, I’m good.’” In simpler terms, Bitcoin’s dominance leaves Ethereum trailing in the ETF space.
Part of a Broader Trend
This sharp downturn isn’t isolated. It’s part of a broader trend affecting the crypto market, which recently saw over $740 million in leveraged positions wiped out in just 24 hours. Recent upheavals include a sharp 7.1% drop in Japan’s Nikkei 225, following a rate hike by the Bank of Japan—its worst performance since 2008. Adding to the chaos, the Federal Reserve recently kept interest rates unchanged but hinted at a possible cut in September. Fed Chair Jerome Powell suggested that a rate cut could come if the U.S. economy stays on track, adding uncertainty to the market. These factors, combined with weak U.S. jobs data and slower growth in tech stocks, have intensified the market’s turbulence.
What Is Ethereum’s Price?
Despite the current turmoil, there’s hope for recovery. If conditions improve, particularly with potential Fed rate cuts and stabilization in global markets, there could still be a rebound for Ethereum and the broader crypto space.
At the time of writing, Ethereum is sitting at $2,448, marking a 26.2% decline over the past 5 days.
