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<img width="1200" height="703" src="https://coingape.com/wp-content/uploads/2024/02/Nearly-200-in-Ethereum-e1711117432572.jpg" class="attachment-full size-full wp-post-image" alt="Ethereum Price" decoding="async" style="float:right; margin:0 0 10px 10px;">
<p>Ethereum, the second-largest cryptocurrency by global market cap, recently took the cryptocurrency realm by storm. Today, its price nosedived nearly 4%, dropping to $3,409. This drop, coupled with a weekly plunge of roughly 8%, has left crypto market traders and investors stunned, birthing speculations surrounding the turbulent landscape of crypto.</p> 
<p>Following ETH’s recent scaling of $4k in the past 30 days, this drop comes riding a plethora of reasons that triggered a bearish market trend for Ethereum. Here’s a comprehensive analysis of the potential reasons that may have triggered the world’s second-most popular crypto’s recent slump.</p> 
<p><strong>Also Read: </strong><a href="https://coingape.com/bitcoin-traders-buying-calls-76k-btc-eth-options-expiry/" target="_blank" rel="noopener">BTC and ETH Options Worth $2.6B Set to Expire, Bitcoin Traders Buying Calls for $76K</a></p> 
<h2 id="key-reasons-behind-eth-dip">Key Reasons Behind ETH Dip</h2> 
<p>Ethereum’s sudden and abrupt slip could be attributed to a whirlwind of factors that cast a shadow on investors’ confidence. A few of them are-</p> 
<h3 id="eth-exchange-inflow-surges-with-regulatory-fud-rise">ETH Exchange Inflow Surges With Regulatory FUD Rise</h3> 
<p>Ethereum jotted its largest weekly exchange inflow today, ever since September 2022. Worth a whopping $720 million, this weekly inflow mirrored rising investor FUD, as a potential ETH ETF in the legal chatter painted an enigmatic scenario across the market.</p> 
<p>Ali Martinez, a prominent crypto market analyst, further spotlighted $1.47 billion worth of ETH exchange inflow recorded in the last three weeks. This collectively added a tint of bearishness to Ethereum, suggesting a combination of selling pressure, profit-taking behaviors, and negative market sentiments, aligning with the token’s recent price action.</p> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <p lang="en" dir="ltr">Nearly 420,000 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> have been sent to <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a> exchanges in the last three weeks, worth around $1.47 billion! <a href="https://t.co/mBoiMZJFJT">pic.twitter.com/mBoiMZJFJT</a></p> 
 <p>— Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1771142679398613449?ref_src=twsrc%5Etfw">March 22, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h3 id="derivatives-data-flags-bearish-trend">Derivatives Data Flags Bearish Trend</h3> 
<p>According to the derivatives data unveiled by <a rel="nofollow" href="https://www.coinglass.com/currencies/ETH" target="_blank">Coinglass</a>, ETH noted a substantial drop in its open interest, volume, and OI-weighted funding rate, falling in line with today’s slump. Open interest dropped 2.98%, reaching $13.01 billion, whereas volume dropped 38.87%, reaching $39.29 billion.</p> 
<p>This showcased a substantial drop in new money entering the token’s derivatives market, further accompanied by reduced market activity. Coupled with the OI-weighted funding rate of 0.0191%, bears’ control in the market validated ETH’s today’s fall.</p> 
<h3 id="crypto-market-liquidation">Crypto Market Liquidation</h3> 
<p>Meanwhile, the crypto market witnessed substantial liquidations in the past 24 hours, with 82,047 traders facing liquidation totaling $223.23 million. Notably, OKX witnessed the largest liquidation order valued at $1.76 million on OKX – ETH-USDT-SWAP.</p> 
<p>Simultaneously, Ethereum took the hit, with liquidations reaching $49.16 million over the past 24 hours, primarily from long traders at $32 million and short traders at $17.16 million. This considerable liquidation further fueled the bearishness on Ethereum, mirroring the crypto realm’s heightened volatility.</p> 
<p><strong>Also Read: <a href="https://coingape.com/worldcoin-price-slips-5-as-kenya-rejects-us-plea-to-maintain-suspension/" target="_blank" rel="noopener">Worldcoin Price Slips 5% As Kenya Rejects US Plea to Maintain Suspension</a></strong></p> 
<h3 id="ethereum-s-market-dynamics">Ethereum’s Market Dynamics</h3> 
<p>Trading View’s data spotlighted that a selling sentiment currently prevails for ETH in the market. Accompanied by an RSI hovering at 45 a lack of buying interest in the market persists, potentially hinting at a downtrend. This further indicates a potential decrease in price moving ahead, although the current bearish landscape painted by Ethereum falls in line with this data.</p> 
<p><strong>Also Read: <a href="https://coingape.com/terra-classic-community-votes-repeal-kyc-proposal-when-lunc-ustc-rally/" target="_blank" rel="noopener">Terra Classic Community Votes to Repeal KYC Proposal, When LUNC and USTC to Rally?</a></strong></p> 
<p>The post <a href="https://coingape.com/ethereum-price-why-eth-falling/">Ethereum Price: Why Is ETH Falling?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Ethereum Price: Why Is ETH Falling?

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