Ethereum (ETH) Collapses 15% in Five Minutes

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As a seasoned analyst with over two decades of experience in traditional and digital asset markets, I have witnessed numerous market fluctuations that range from the sublime to the ridiculous. Today’s Ethereum crash is undeniably one of those moments that will be etched into the annals of crypto history.

Having closely followed the volatile world of cryptocurrencies for several years now, I can confidently say that today’s sudden 15% plunge in Ethereum‘s value in a matter of minutes serves as a stark reminder of the rollercoaster nature of this market. As someone who has seen similar swift and substantial drops before, I urge those new to the space to approach it with caution and never invest more than they can afford to lose.

The leading cryptocurrency dropped to its lowest point this year, reaching a daily low of $2,112 in trading.

Even though Ethereum boasts a large market value, it has struggled to keep pace with the overall cryptocurrency market. Intriguingly, it has even lagged behind the meme coin sector. No meme cryptocurrency in the top 10 has experienced a decline as significant as Ethereum’s.

As an analyst, I’ve just reviewed data from CoinGlass, a trusted cryptocurrency analytics platform, which indicates that a staggering $217 million in Ethereum long positions have been liquidated over the past 12 hours. It’s noteworthy that approximately 38.5% of these liquidations were facilitated by the OKX exchange.

As an analyst, I observed a scenario where a whale (a large-scale investor) decided to take a long position on Ethereum. Unfortunately, during today’s market downturn, this whale was liquidated, resulting in a substantial loss of approximately $22.3 million from their Ethereum holdings.

Schiff takes a victory lap  

Last week, cryptocurrency naysayer Peter Schiff predicted that the price of the altcoin would soon crash below the $2,000 level. He pointed to the fact that Ethereum exchange-traded funds were already down 15% despite trading for only two weeks. 

In just two days, Ethereum has reached $2,100. This means that nearly 90% of the prediction about its price increase has already been realized, as stated by Schiff on his social media platform.

Commodity trader Peter Brandt has also stated that his downside target for Ethereum has been met.

The nearly reached mark at the top of the rectangle for ETH is approaching its limit. However, it’s important to note that chart analysis is not always reliable. $ETH— Peter Brandt (@PeterLBrandt) August 5, 2024

Bitcoin dominance keeps rising 

Though Bitcoin experienced a steep decline of approximately 9%, it’s important to note that this fall is minuscule when compared to the substantial drop witnessed by its primary competitor.

This pushed Bitcoin’s market dominance to 58%, the highest level since April 2021. 

The leading cryptocurrency is currently trading at $52,876 on the Bitstamp exchange. 

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2024-08-05 08:31