Ethereum<\/a>, 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>\n Following ETH\u2019s 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\u2019s a comprehensive analysis of the potential reasons that may have triggered the world\u2019s second-most popular crypto\u2019s recent slump.<\/p>\n <\/p>\n Ethereum\u2019s sudden and abrupt slip could be attributed to a whirlwind of factors that cast a shadow on investors\u2019 confidence. A few of them are-<\/p>\n 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>\n 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\u2019s recent price action.<\/p>\n <\/p>\n Nearly 420,000 $ETH<\/a> have been sent to #crypto<\/a> exchanges in the last three weeks, worth around $1.47 billion! pic.twitter.com\/mBoiMZJFJT<\/a><\/p>\n \u2014 Ali (@ali_charts) March 22, 2024<\/a><\/p>\n<\/blockquote>\n According to the derivatives data unveiled by Coinglass<\/a>, ETH noted a substantial drop in its open interest, volume, and OI-weighted funding rate, falling in line with today\u2019s slump. Open interest dropped 2.98%, reaching $13.01 billion, whereas volume dropped 38.87%, reaching $39.29 billion.<\/p>\n <\/p>\n This showcased a substantial drop in new money entering the token\u2019s derivatives market, further accompanied by reduced market activity. Coupled with the OI-weighted funding rate of 0.0191%, bears\u2019 control in the market validated ETH\u2019s today\u2019s fall.<\/p>\n 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 \u2013 ETH-USDT-SWAP.<\/p>\n 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\u2019s heightened volatility.<\/p>\n <\/p>\n Also Read: Worldcoin Price Slips 5% As Kenya Rejects US Plea to Maintain Suspension<\/a><\/strong><\/p>\n Trading View\u2019s 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>\nKey Reasons Behind ETH Dip<\/h2>\n
ETH Exchange Inflow Surges With Regulatory FUD Rise<\/h3>\n
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Derivatives Data Flags Bearish Trend<\/h3>\n
Crypto Market Liquidation<\/h3>\n
Ethereum\u2019s Market Dynamics<\/h3>\n
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