Ethereum’s price dropped below $4,000, triggered by $19 billion in liquidations due to US-China trade tensions and derivatives unwinding, impacting global markets.
This event signals potential volatility in cryptocurrency markets and highlights institutional accumulation trends amid geopolitical pressures.
The market witnessed a significant drop in Ethereum’s value, falling below $4,000. This decline was driven largely by liquidation events totaling nearly $19 billion, compounded by heightened US-China trade tensions impacting global markets.
Prominent figures like Fundstrat’s Mark Newton and Tom Lee commented on the downturn. Newton expressed optimism, stating that the market might bottom out within days and ETH could rally to $5,500, highlighting the potential for swift recovery.
Ethereum Dips Under $4K Following $19B Liquidation
The nearly $19 billion liquidation event impacted Ethereum, dropping its price from $4,300 to $3,400 before a partial recovery. Institutional investors continued to accumulate ETH, suggesting confidence in a strong recovery potential rebound.
Institutional flows indicate strong support for ETH, with exchange supply dropping to lows not seen since 2016. Analysts see a potential for ETH to stabilize, considering historical data and expert predictions.
Experts Predict Ethereum’s Swift Technical Recovery
The recent drop has parallels with past events like the March 2020 and May 2021 sell-offs. These were characterized by swift declines followed by technical recoveries, often dictated by macroeconomic factors.
Experts from the crypto community, including Kanalcoin, emphasize the potential for a short-term technical recovery in Ethereum prices. They base these projections on historical patterns and current market conditions.
I do not make much of crypto weakness in recent days, and expect $ETHUSD likely bottoms out over the next 1-2 days before heading back higher and rallies to $5500.
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