ETH Faces Sharp Drop After $142M Futures Liquidation, ETF Inflows Signal Ongoing Institutional Demand

Ethereum is currently trading at $2,486.19 on Binance, with a 24-hour opening price of $2,557.30 and a price change of -2.78%. Trading volume remains robust, and the market cap is stable near $300 billion, with a circulating supply of approximately 120.72 million ETH.

The recent price decline is primarily attributed to heightened market volatility following the U.S. announcement of a 50% tariff on imports from the European Union, which triggered $142 million in Ethereum futures liquidations within 24 hours. Additional contributing factors include a significant transfer of 100,000 ETH to Kraken, suggesting potential increased selling pressure, and profit-taking by long-term holders as ETH approached major resistance at $2,800. Despite these pressures, net inflows into spot Ethereum ETFs, including a $52.84 million inflow into BlackRock’s ETF, indicate continued institutional interest. Ethereum’s upcoming "Pectra" upgrade and overall strong trading activity support a generally bullish longer-term outlook, though short-term volatility remains elevated due to recent macroeconomic developments and large on-chain transactions.