By Alicia Maher
Following the Terra crash and other macroeconomic events, the crypto market is still bearish. It is yet to show any sign of recovery yet. However, the ETH price decline in the last few days is a concern for some crypto investors.
ETH has shed more than 39% in value over the last 30 days. Also, $240M worth of ETH liquidations has been recorded in the last day.
ETH Liquidations In 24 Hours Hit $240M
During the early morning session today, the ETH price was at $1.75K. Thus, indicating that the second leading crypto has lost 10% worth of value in the past 24 hours. Coinglass data estimates that there have been more than $240M ETH liquidations within the past day. That amount is equivalent to 137.4K ETH.
In comparison, the total liquidations in the crypto market within the same period were $545.5. Hence, ETH liquidations within this period represent nearly half of the total liquidations of the crypto market.
The Coinglass data reveal that 84% of these liquidations were from long positions. ETH has been underperforming based on the bull’s perspective. Hence, it is no surprise that there was $204m worth of long position liquidations of ETH.
With more than $190M worth of liquidations, the OKEx exchange had the highest amount of crypto market liquidations within this period. Despite the liquidations, various data show a 110% increase in ETH’s trading volume in the last day.
Is There A Problem With The ETH 2.0?
It is surprising that ETH’s value is reducing amidst the expected completion of its switch to a PoS network. Reports of a 7-block reorg on the ETH beacon chain may have triggered additional intense selling pressure on ETH. Some analysts claim that a 7-block reorg is a possible high-level security risk.
Hence, the panic in investors selling their ETH holdings. Some analysts predict that the 7-block reorg will delay the completion of the network’s switch to a pos consensus mechanism. The current schedule shows that the switch should be complete by August 2022.
The crypto market continues to struggle as investors convert their digital assets to other inflation-proof assets. Due to the intense and consistent selling pressure, the overall evaluation of the crypto market declined by an additional 2.48% in the last 24 hours.
According to the latest Coinmarketcap, the crypto market cap is currently $1.2 trillion. Like ETH, there have also been more than $100M worth of BTC liquidations in the last day. However, BTC’s dominance over the crypto market was merely affected as the altcoins didn’t make any excellent performance.
Number Of Wallets Holding ETH In Loss Hits 2-Year Peak
According to Glassnode data, there are now 34.1M addresses holding ETH less than the amount they bought it. Santiment data also shows a significant reduction in ETH network activities. Consequently, there have been low gas fees on the network.