Ethereum prices drop slightly after reaching new peak on Sunday
Ethereum experienced a momentous weekend with its price soaring to a new all-time high achievement of $4,946, only to see a slight dip to around $4,625. The heightened volatility led to a total of $315 million in ethereum liquidations over the past 24 hours, with the majority of $217 million attributed to long positions, as reported by CoinGlass.
Data analytics firm Glassnode highlighted the MVRV ratio reaching 2.15 as Ethereum hit a new ATH. This ratio indicates that on average, investors are holding over 2.15 times unrealized gains. Historical patterns from March 2024 and December 2020 suggest that such levels precede phases of increased volatility and profit-taking.
In a separate development, US spot ETFs observed $341 million in inflows on Friday, primarily driven by Fidelity’s Ethereum Trust. Despite this positive influx, total outflows for the week amounted to $237.7 million, culminating a 14-week streak of consistent positive inflows into investment funds, as per data from SoSoValue.
Several Ethereum treasury firms underwent notable activity on Monday, updating their holdings and investment strategies. ETHZilla, for example, disclosed a board resolution approving a $250 million stock repurchase program. The firm currently possesses 102,237 ethereum tokens with an average acquisition cost of $3,948. Additionally, ETHZilla retains approximately $215 million in cash equivalents. A recent SEC filing indicated the company’s potential issuance and sale of common stock worth up to $10 billion, with proceeds aimed at acquiring more ethereum.
BitMine Immersion Technologies, recognized as the largest ethereum treasury firm, displayed a significant increase of 12.5% in its holdings. The firm’s ethereum tokens surged from 1.5 million to about 1.7 million, pushing its total holdings, combining crypto and cash, beyond $8.8 billion.
Another significant player, Fundamental Global, aiming to secure a 10% stake in the ethereum network, expanded its holdings to 48,545 ethereum tokens, valued at around $230 million. The firm’s average purchase price stands at $3,850.
These recent developments in Ethereum’s price movement, liquidations, and treasury activities underscore the growing interest and investment in the cryptocurrency as investors navigate the ongoing market dynamics.
