The recent poor performance of newly launched ETH spot ETFs caused a significant decline in the crypto market early Thursday.
Ethereum dropped to a multi-day low of $3,100 from $3,500 earlier in the week.
The US-based ETFs experienced a net outflow of $113.3 million on their second trading day, with significant losses from Grayscale’s Ethereum Trust contributing to the decline.
Over 73,000 traders were liquidated, totaling $292.25 million, with Binance seeing its largest ever liquidation order of $11.78 million in BTCUSDT.
Ethereum is now trading at $3,172, down almost 7% in the last 24 hours. Despite a historical decrease in exchange reserves indicating long-term holding intentions, buyers failed to push ETH above the $3,500 mark, leading to a period of price stabilization.
High outflows from Grayscale Ethereum Trust (ETHE), losing $326.9 million, further dragged down the spot funds.
Bitcoin remains more competitive due to its first-mover advantage and higher institutional adoption.
Market-wide, less risk appetite and weak earnings reports from major companies led to significant losses in the S&P 500 and Nasdaq, adding to the pressure on crypto markets.