Ethereum is taking a hit today. The second-largest cryptocurrency dropped 4.7% in 24 hours, pulling back toward $2,800 after briefly touching $3,000 this morning.
Why ETH Is Falling
- Broader Market Weakness: Crypto valuations are feeling pressure from overall market uncertainty.
- High Volatility: Despite bullish catalysts, including JPMorgan’s tokenized money market fund on Ethereum and positive long-term forecasts from analysts like Tom Lee, risk sentiment is low.
- Derivative Liquidations: Over $162M in ETH perpetual futures were liquidated in the past 24 hours, with $130M coming from long positions, amplifying downward pressure.
The Takeaway
Ethereum’s brief rally above $3,000 shows potential, but today’s pullback highlights structural weakness in the crypto sector. Traders should watch support levels near $2,800 and monitor market sentiment, as volatility remains high.
