- Ethereum sees heavy Binance sell-offs, fueling volatility and bearish sentiment.
- Liquidations surge as ETH price drops 4.56%, hitting $2,675 amid market uncertainty.
- Security breaches shake confidence, adding pressure to struggling crypto markets.
Ethereum is experiencing heightened volatility as Binance traders offload ETH at an accelerated pace. The derivatives market has seen a sharp rise in activity, with trading volume increasing by 50.85% to $43.13 billion.
However, open interest has dropped by 6.46%, now standing at $24.03 billion. The options market has also shown movement, with volume rising by 15.56% to $790.46 million, while options open interest grew slightly by 0.41% to $6.84 billion.
The 24-hour long/short ratio remains at 0.9585, indicating a nearly balanced sentiment among traders. Binance’s ETH/USDT long/short ratio for accounts is at 3.7574, while the top trader ratio stands at 5.0827, reflecting bullish positions despite bearish price action.
Ethereum Faces Price Pressure as Liquidations Soar
Ethereum’s price has experienced a sharp downturn, dropping by 4.56% in the last 24 hours to $2,675.36. Over the past week, the asset has declined by 2.75%. With a circulating supply of 120 million ETH, the total market capitalization now stands at $322.54 billion.
The broader market sentiment has been impacted by significant liquidations, with $56.89 million in total liquidations. Of this amount, $40.73 million came from long positions, while $16.17 million came from short positions.
Technical Indicators Suggest Mixed Market Signals
Ethereum’s RSI stands at 43.09, indicating neutral to bearish momentum. A drop below 30 could signal oversold conditions, potentially triggering a price rebound. The MACD further confirms the bearish trend, with its line remaining below the signal line. However, the histogram is turning less negative, hinting at a weakening bearish momentum.
Crypto Market Hit by Security Breaches and Sentiment Shifts
The broader cryptocurrency market has suffered from a series of security breaches, significantly affecting investor confidence. The Bybit hack, which led to the loss of $1.4 billion in ETH, had a major impact on prices. Despite Bybit’s successful fund recovery, the market has struggled to regain momentum.
Following this, the Infini hack resulted in an additional $49.5 million in USDC being stolen, further fueling bearish sentiment. Although the Infini team assured full compensation, the psychological impact on traders remains evident. Bitcoin and Ethereum continue to struggle with downward price action, raising concerns about when the market may stabilize.
