• Ethereum (ETH) price dropped suddenly on Wednesday as cryptocurrencies pulled back. Bullish liquidations jumped to the highest point since March 9.
• The amount of bullish liquidations jumped to over $41.1 million while shorts liquidations were over $1.2 million.
• ETH’s decline also coincided with outflows from several centralized exchanges and Gary Gensler’s questioning on Tuesday about Ethereum being a financial security.
Ethereum Price Drop
Ethereum (ETH) price nosedived suddenly on Wednesday as more investors liquidated their positions, dropping to a low of $1,976, the lowest level since Monday this week. It has dropped by more than 8% from the highest point this week.
The amount of bullish liquidations jumped significantly to over $41.1 million while shorts liquidations were only at $1.2 million in comparison. These numbers were significantly higher than those seen on Wednesday when bulls liquidations were just at $9.6 million and shorts liquidations at $16 million.
Outflows From Exchanges
The sell-off also coincided with outflows from several centralized exchanges such as Binance losing over $18 million of outflows in the past 24 hours and Bitfinex, Huobi, and Bybit losing over $20 million each in the same period.
Gary Gensler’s Testimony
On Tuesday, during congressional testimony, SEC Chairman Gary Gensler repeatedly refused to answer whether he believes that Ethereum is now a financial security which caused some concern among investors leading them to sell off their coins further causing prices to fall even lower from its already decreased state before his testimony.. In an interview prior to his testimony, Gensler said that he believes that Ethereum and other proof-of-stake coins are securities but his main concern was around staking opaqueness which should be regulated for customer protection purposes according to him..
Ethereum Price Prediction
The daily chart shows that ETH price has fallen below both its 50-day moving average (MA) and 100-day MA which indicates further bearish pressure in the near future unless these indicators start turning upwards again soon or if investor sentiment rebounds after the recent sell-off experienced by Ethereum and other cryptocurrencies