Ethereum Price Declines Amid Market Volatility

Despite this network upgrade, Ethereum has faced significant price pressure. The second-largest cryptocurrency by market capitalisation dropped sharply to $2

After hitting a record low for the year on Monday, the price of Ethereum (CRYPTO: ETH) recovered slightly on Tuesday but remained under pressure from the broader market sell-off.

What Happened: At the time of writing on Tuesday morning ET, ETH was down 17.8% over 24 hours to $2,544. This marked its biggest single-day drop since May 2021.

Over the past seven days, ETH has declined by 28.9%, compared to a 4.7% decline in Bitcoin (CRYPTO: BTC) and a 10.2% decrease in Solana (CRYPTO: SOL).

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According to CoinGlass, over 2.3 billion in positions were liquidated across 738,000 traders in just 24 hours. Of this total, ETH accounted for $611 million in liquidations, with long-position traders facing the highest losses.

However, Bybit CEO Ben Zhou suggested that the actual liquidation total could be much higher, estimating it to be in the range of $8 billion to $10 billion.

According to Zhou, exchanges may limit the liquidation data they report, leading to lower publicly available numbers.

“This is because exchanges want to avoid traders panicking and moving their funds off the exchange in response to seeing high liquidation numbers,” Zhou said.

According to CoinGecko, ETH is now trading about 48% below its all-time high of $4,878, which was hit in November 2021.

ETH's one-day at-the-money volatility spiked from 34% to 184%, indicating heightened market instability.

According to the Deribit ETH DVOL index, which measures expected volatility over four weeks, the metric jumped from 67% to 101% during the same period.

As traders rushed to hedge their positions amid the market sell-off, the put-call ratio surged from 0.6 to over 2.5.

Adding to the selling pressure, a dormant whale moved $228.6 million worth of ETH to Bitfine