Ethereum (ETH) experienced a further decline on Tuesday following a disappointing first-day trading volume for Hong Kong’s spot Bitcoin and ETH ETFs. This comes off the back of increased long liquidations and mixed whale activity surrounding the top altcoin.
Read more: Ethereum erases weekend gains as yearlong SEC investigation comes to light
Ethereum’s decline has triggered increased long liquidations in the past 24 hours. Here are key market movers for the largest altcoin:
Glassnode: Ethereum’s exchange supply drops faster than Bitcoin’s. Investors hoard ETH for the long haul, predicting a bullish surge. Ethereum set to dominate the altcoin rally!
Focus on the big picture, not short-term noise. pic.twitter.com/sJMcpx2jP2
— Kyledoops (@kyledoops) April 30, 2024
He shared that restaking and staking protocols have made significant progress and will spin off into operating entities to support blockchain networks worldwide. Several crypto community members highlighted that this may be the reason for his potential ETH buying spree in the past weeks.
Also read: Bitcoin, Ethereum Spot ETF in Hong Kong sees underwhelming response with $12 million in trade volume
Ethereum saw another day of increased decline as prices slipped below the $3,000 key level on Tuesday. Considering the market has been waiting on a price trigger since the week began, the disappointing trading volume of Hong Kong’s spot BTC and ETH ETFs caused the sharp decline.
Also read: Ethereum cancels rally expectations as Consensys sues SEC over ETH security status
While short-term price movement indicates more decline, exchange withdrawals from long-term bulls could be a strong support to prevent a decline below the $2,852 key level.
ETH/USDT 4-hour chart
Hence, if ETH fails to break below this level, it may bounce up to fill up recent market inefficiencies. ETH’s recovery from this descent could see it break past the $3,300 key level to tackle inefficiencies at the $3,454 level formed on April 12. This thesis may be invalidated if a key macro event significantly affects the crypto market.