Why Is $ETH ($ETH) Dropping Today?

Ethereum’s price recovery has stalled, with sideways trading dominating the altcoin’s recent performance. Despite bullish attempts and increased whale activity, bearish momentum continues to suppress upward movement.

Similar to the broader altcoin market, Ethereum is struggling amid heightened market uncertainty. So, what’s driving the recent decline in ETH’s price?

A key factor appears to be waning investor interest, paired with market headwinds that have pushed Ethereum’s price down by 1.5% today. This marks the second dip within a 24-hour period. ETH is currently trading around $1,803, with a 12% rise in trading volume to $10.52 billion—reflecting increased volatility.

Earlier, the price dropped from $1,840 to $1,785, rebounded briefly, and then tumbled again, signaling strong bearish pressure.

According to Coinglass, $37.45 million worth of positions have been liquidated, primarily from overleveraged longs. This reflects a sharp market pullback that forced many traders to exit prematurely. Open interest is also declining, indicating further position closures as bullish bets unravel.

Adding to the uncertainty, Ethereum co-founder Vitalik Buterin recently raised concerns about the security of Layer-2 solutions. Despite the current turbulence, the long-term outlook for Ethereum remains optimistic.