Ethereum Slides 6.75% to $2394.66 Amid Broad Crypto Market Sell-Off – TradingPedia

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“headline”: “Ethereum Slides 6.75% to $2,394.66 Amid Broad Crypto Market Sell-Off”,
“articleBody”: “Key Moments:rnrn rn Ethereum dropped over 6.75% to around 2,395 amid a surge in trading volume and market-wide weakness.rn More than $200 million in long positions were liquidated, contributing to sharp price declines for ETH.rn The total value of the cryptocurrency market decreased by approximately 1.40%, settling at $3.25 trillion.rn rnrnrnMarket-Wide Risk Sentiment Sparks ETH DownturnrnrnMonday witnessed Ethereumu2019s price plunge more than 6%, reaching approximately 2,395. The decline followed a broader pullback across digital assets, as the crypto market capitalization declined by around 1.40% to $3.25 trillion.rnrnrnrnETH touched an intraday low of $2,353 after peaking at $2,587 on May 18th. Daily trading volume jumped by over 100% to around $30.4 billion, underscoring increased sell-side momentum.rnrnDowngrade of US Sovereign Rating Fuels Risk AversionrnrnThe deteriorating sentiment followed a notable development over the weekend, when the United States lost the triple-A credit rating granted by Moodyu2019s. The announcement marked Moodyu2019s first US downgrade in over a century and sent ripples through markets. The financial services firm made this decision due to the United Statesu2019 $36 trillion national debt, along with other factors such as increasing interest costs and notable fiscal deficits.rnrnIn response, Treasury yields surged, signaling a shift toward pessimistic market sentiment. Concerns about borrowing costs and the Federal Reserveu2019s policy path, currently expected to lower rates just twice by the end of the year, as per the CME FedWatch Tool, compounded the pressure on speculative assets like cryptocurrencies.rnrnLeverage Washout Exacerbates DeclinesrnrnA wave of long position liquidations amplified Ethereumu2019s steep drop. Over the past 24 hours, more than $255 million in ETH derivatives positions were liquidated. Crucially, 78% of those ($200 million) stemmed from long-sided bets. These forced liquidations occur when leveraged traders are unable to meet margin requirements, prompting exchanges to automatically sell their assets, which intensifies downward price action. The broader crypto space experienced a shakeout of $665 million in terms of liquidations.”,
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Ethereum Slides 6.75% to $2,394.66 Amid Broad Crypto Market Sell-Off
Ethereum Slides 6.75% to $2,394.66 Amid Broad Crypto Market Sell-OffWritten by Michael FisherMichael FisherMichael Fisher is an active trader and market analyst. He holds a Bachelors degree in Economics from University of Pennsylvania and started his career as a private Forex trader back in 2005., | Updated: May 19, 2025Key Moments:Ethereum dropped over 6.75% to around 2,395 amid a surge in trading volume and market-wide weakness.More than $200 million in long positions were liquidated, contributing to sharp price declines for ETH.The total value of the cryptocurrency market decreased by approximately 1.40%, settling at $3.25 trillion.Market-Wide Risk Sentiment Sparks ETH DownturnMonday witnessed Ethereum’s price plunge more than 6%, reaching approximately 2,395. The decline followed a broader pullback across digital assets, as the crypto market capitalization declined by around 1.40% to $3.25 trillion.ETH touched an intraday low of $2,353 after peaking at $2,587 on May 18th. Daily trading volume jumped by over 100% to around $30.4 billion, underscoring increased sell-side momentum.Downgrade of US Sovereign Rating Fuels Risk AversionThe deteriorating sentiment followed a notable development over the weekend, when the United States lost the triple-A credit rating granted by Moody’s. The announcement marked Moody’s first US downgrade in over a century and sent ripples through markets. The financial services firm made this decision due to the United States’ $36 trillion national debt, along with other factors such as increasing interest costs and notable fiscal deficits.In response, Treasury yields surged, signaling a shift toward pessimistic market sentiment. Concerns about borrowing costs and the Federal Reserve’s policy path, currently expected to lower rates just twice by the end of the year, as per the CME FedWatch Tool, compounded the pressure on speculative assets like cryptocurrencies.Leverage Washout Exacerbates DeclinesA wave of long position liquidations amplified Ethereum’s steep drop. Over the past 24 hours, more than $255 million in ETH derivatives positions were liquidated. Crucially, 78% of those ($200 million) stemmed from long-sided bets. These forced liquidations occur when leveraged traders are unable to meet margin requirements, prompting exchanges to automatically sell their assets, which intensifies downward price action. The broader crypto space experienced a shakeout of $665 million in terms of liquidations.Exclusive Free Daily Trading Insights and Analyses!Join our list of 120 000+ subscribers. Get Insights from Pro Investors.
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