Ethereum Slips Below $3k as Liquidations Soar to $320 Million

Ethereum has once again dipped below the $3,000 mark amidst downward pressure in the broader cryptocurrency market.

While Bitcoin approached $60,000 on Tuesday, Ethereum faced selling pressure, dropping below the psychological $3,000 level. On Bitstamp, ETH/USD fell to lows of $2,945, while on Coinbase, it revisited $2,942.

ETH Weakness Amid Key Developments

Ethereum's decline coincides with significant developments in its ecosystem and regulatory landscape. ConsenSys recently filed a lawsuit against the US Securities and Exchange Commission (SEC), alleging regulatory overreach. The lawsuit aimed to declare ETH as not a security, countering reports of the SEC's consideration of Ethereum as an unregistered security.

Despite these developments, Ethereum remained above $3,000, buoyed by optimism surrounding the anticipated debut of spot Bitcoin and Ethereum ETFs in Hong Kong. However, the actual launch of spot ETH ETFs in Hong Kong fell short of expectations, leading to a negative market reaction.

Massive Liquidations Across the Market

The disappointing ETF launch triggered significant liquidations, with over $320 million in assets liquidated in the past 24 hours, according to Conglass data. Ethereum accounted for over $96 million of these liquidations, with both long and short positions affected.

More than 108,601 traders were liquidated within this period, with the largest single liquidation order recorded on Binance at $5.03 million.

Despite the market turmoil, Ethereum's price dropped by 6% in the past 24 hours, as reported by Tradingview.