- Increased Fear of Choppy Prices
- Whales Capitulation
- Low Demand from Spot Ether ETFs
Ethereum (ETH) saw significant losses in the past 24 hours, dropping nearly 8 percent to around $2,474. This decline led to forced liquidation of positions totaling more than $102 million, mostly from long traders.
Increased Fear of Choppy Prices
Ethereum's fear and greed index dropped from around 53 percent (neutral) to 32 percent (fear) in the past 24 hours, indicating growing fear of further Ethereum price capitulation, evident in the daily and weekly charts. Popular analyst Peter Brandt suggests that Ethereum's price will likely continue in bearish sentiments in the near term if it remains below $2,814.
Whales Capitulation
According to on-chain analysis, Ethereum whales have accelerated profit-taking in the last few days. The fear of further crypto capitulation in September has seen more whale investors exit the market. For instance, Wintermute deposited over 17.5k Ether ($43 million worth) to the Binance exchange in the past 24 hours. Another whale investor was spotted selling over 5k Ether via Binance earlier today.
Low Demand from Spot Ether ETFs
Since the historic approval and launch of spot Ether ETFs in the United States, the demand has remained relatively low. Led by Grayscale’s ETHE, US spot Ether ETFs registered a net cash outflow of about $3.45 million on Tuesday, bringing the total net outflow to $481 million to date.
Ethereum's price decline is driven by a combination of factors including increased fear of choppy prices, whales' capitulation, and low demand for spot Ether ETFs. Only time will tell what lies ahead for ETH's price.
