The second largest cryptocurrency is Ethereum $3,348.7experienced a sharp selling wave of over 9% in the last 24 hours. The ETH price fell to mid-November levels of $3,300 as strong macroeconomic data from the United States lowered expectations for a Fed rate cut.
Whales and Giant Purges
Crypto market and Bitcoin 
$95,447.5 It saw huge sales with the decrease in price. ETH stood out with liquidations in the last 24 hours. According to Coinglass data, more than $152 million in liquidity was realized in ETH, while this figure was $128 million in BTC. Many ETH sales transactions have been recorded in the last 24 hours. Whales and institutional investors turned to ETH sales as they lost investor confidence after JOLTS job postings and ISM Services PMI data showed a strong US economy.
As institutional investors lost confidence, there was a net outflow of $86.8 million in spot Ethereum ETFs. These outflows came from Fidelity’s FETH, Grayscale’s ETHE and ETH mini exchange-traded funds. Ethereum Foundation held its first ETH sale of the year. The foundation transferred 100 ETH for 329,463 DAI, selling approximately $12.96 million worth of ETH in 2024. These sell-offs limit the potential rise of Ethereum price.
According to ETH derivative data, open positions decreased by 7%. ETH Futures OI is at 9.04 million and its value is $30.33 billion. On the other hand, OI in options has increased because investors are rearranging call and put options. Tony, on the other hand, thinks the situation is not that bad.
“I remain long as long as we hold above $3200 at the daily close.” -Crypto Tony.
Ethereum Price Comment
Ethereum price is currently trading at $3,329 with no signs of recovery yet. Experts set price targets of $5,000 and $10,000 for the year. For this to happen, the newly matured expectation that the Fed will make a single interest rate cut throughout the year must be broken. There is the potential for the base effect to accelerate the decline in inflation this year. On the other hand, the strengthening of the dollar may at some point limit the increase in prices of goods and services, and this may push cryptocurrencies up. The good news is that markets are almost pricing in the worst. With the data that will allow the single interest rate cut to be revised to 2-3, cryptocurrencies will have a significant rise area. ETH is included in this.
This volatility in the ETH market offers important indicators for investors to pay attention to. Keeping a close eye on market conditions can ensure preparedness for future fluctuations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
