Recently, ETH plummeted, directly falling below $4200! 😱 Many friends are asking: What exactly happened? Today, let's delve into the reasons behind it!
1⃣ Market Panic + Leverage Liquidation
The sharp drop in ETH prices triggered a massive liquidation, especially among leveraged users on DeFi platforms, directly leading to a selling spree! On-chain data shows that the liquidation amount exceeded $320 million in the past 24 hours, with ETH collateral liquidation reaching as high as $187 million! 413
2⃣ ETF Good News Turns into Bad News
After the launch of the ETH ETF, market expectations were too high, resulting in capital inflow far below expectations, leading to a net outflow instead! In the first week, the net outflow reached $341 million, directly worsening the ETH price 54.
3⃣ Increased Centralized Risks
After Ethereum's transition to PoS, whale trading volume decreased by 70%, significantly reducing market liquidity! Coupled with the Ethereum Foundation selling a large amount of ETH, it further intensified the bearish sentiment 38.
4⃣ Global Economic Environment Impact
Factors such as the Federal Reserve's interest rate hike expectations, inflation pressures, and the appreciation of the Japanese yen have caused investors to flee high-risk assets, with ETH being the first to bear the brunt 411.
Summary:
The drop in ETH is the result of multiple overlapping factors, and market sentiment remains low in the short term. However, in the long run, Ethereum's technological innovation and ecological development are still worth looking forward to! 💪
Investment Advice:
Short-term investors: Operate cautiously and set stop-losses!
Long-term holders: Accumulate on dips and pay attention to technical support!
