Market Shock: Ethereum Plunges to Lowest Level Since January 2024
Ethereum (ETH) plunged to its lowest level since January 2024 during early Asian trading on Monday, hitting around $2,100. The plunge occurred in just 15 minutes around 01:00 Korean time, with Ethereum falling from $2,540 to $2,100, a 15% drop. Traders were shocked by the sharp decline and couldn’t believe it.
Triggering the Sell-Off: Jump Trading and Other Institutions
Like Ethereum, major assets such as Bitcoin (BTC) and Solana (SOL) have each lost 10% in value during the same period. Among the top 10 cryptocurrencies by market capitalization, Ethereum has been the most affected. The cryptocurrency market has seen massive liquidations in the past 24 hours, resulting in losses of more than $830 million. According to data from Coinglass, Ethereum traders lost $380 million.
Learn More: Ethereum (ETH) Price Prediction 2024/2025/2030
Cryptocurrency analyst DeFi Mochi said that the sharp decline in Ethereum was mainly due to the selling of large amounts of funds. Major players such as Paradigm and Grayscale contributed significantly to this decline. Paradigm sold 46,000 Ethereum for about $3,000, totaling $138 million. Similarly, Grayscale sold 372,000 ETH, worth approximately 1.1 billion won. DeFi Mozzi warns that “Grayscale could dispose of more than $5 billion in Ethereum.”
Additionally, according to Spot on Chain, Jump Trading is actively selling its Ethereum holdings. The company moved a large amount of Ethereum to a centralized exchange (CEX) just days before the market dropped. Over the course of ten days, Jump Trading participated in various transactions, including the redemption and release of large amounts of Wrapped Stake Ethereum (WSTETH) and Stake Ethereum (STETH) through platforms such as Lido Finance. The activity ended with a net deposit of 72,213 Ethereum, equivalent to approximately $231 million, on several major exchanges including Binance and Coinbase.
In addition, an unidentified group called “Smart Money” also participated in the pre-crash selling. Just before the market crashed, the group deposited 2,500 Ethereum worth $7.27 million on Binance. The strategic timing of this trade, which preceded a 21% drop in Ethereum’s price, suggests a well-thought-out move by savvy players in the cryptocurrency industry.
Market Uncertainty and Global Tensions
Notably, Ethereum has lagged other cryptocurrencies this year. While Bitcoin and Solana are up 27% and 24% respectively this year, Ethereum has barely maintained its value. Global economic and geopolitical tensions, particularly between Iran and Israel, are exacerbating broad market instability. The Bank of Japan’s unexpected hawkish turn and the Federal Reserve’s hesitancy to cut interest rates have added to market uncertainty.
In other words, the cryptocurrency market’s Fear and Greed Index fell to 26, showing that fear is widespread.
“The Bank of Japan’s interest rate hike triggered a broad correction that affected both cryptocurrencies and traditional markets. The sudden drop may be surprising, but history shows that a quick market recovery is possible.” – CEO of cryptocurrency derivatives exchange Pi42 said in an interview with BeInCrypto.
