Ethereum's 2.64% Decline!
Ethereum's price dropped by 2.64% in the last 24 hours, underperforming the broader crypto market. Several factors contributed to this decline:
Long Liquidations: $210 million in ETH futures positions were liquidated, triggering cascading sells. Perpetual funding rates turned negative, signaling excessive bearish leverage.
ETF Outflows: $196.6 million was withdrawn from ETH ETFs on September 4, erasing bullish momentum. Meanwhile, BTC ETFs gained $131 million, indicating some institutions rotated to Bitcoin amid ETH's underperformance.
Technical Breakdown: ETH broke below its 100hour SMA ($4,350) and pivot point ($4,349.8), with weakening momentum indicated by the RSI (49.96).
Deep Dive
1. Derivatives Carnage: The $210 million in long liquidations is the largest since August 20. High open interest ($948 billion) amplified volatility, with every 1% drop potentially liquidating $1.19 billion in longs below $4,400.
2. Institutional Demand Falters: Although ETH ETFs saw outflows, they still hold 6.3 million ETH ($26 billion). "Shark" wallets have accumulated 4.4 million ETH since August, indicating structural demand remains.
3. Technical Analysis: ETH's break below $4,350 and $4,349.8 triggered sell pressure. The next critical support is the 61.8% Fibonacci level at $4,148. A breakdown here could target $3,929.
Conclusion
Ethereum's decline reflects leveraged unwinding, institutional profittaking, and technical triggers. However, structural demand persists via shark accumulation and $26 billion ETF holdings. Key levels to watch are $4,148 (Fibonacci support) and ETF flows, which could impact ETH's performance versus BTC.