Ethereum prices moved lower over the past 24 hours as renewed selling pressure swept through the digital asset market, dragging the world’s second-largest cryptocurrency down by 3.20% to trade around $3,161.76.
The decline placed Ethereum behind the broader crypto market, which slipped by an average of 2.56% over the same period, despite ETH still holding onto a 6.06% gain over the past seven days. Market participants attributed the pullback to widespread liquidation of leveraged long positions following a recent rally.
Data from CoinMarketCap showed that Ethereum’s trading activity softened, with daily volume dropping 4% to approximately $26 billion. Analysts noted that institutional investors appeared to be locking in profits midweek, contributing to short-term price weakness.
Market watchers described the selloff as a classic leverage flush, driven by technical fatigue after recent gains and a rotation of capital back toward Bitcoin. Despite the pullback, analysts stressed that Ethereum’s long-term fundamentals remain intact.
Bitcoin’s share of the total crypto market expanded slightly, with dominance rising 0.13% in 24 hours to 58.31%. Meanwhile, the Altcoin Season Index remained subdued at 23, indicating continued investor preference for Bitcoin over alternative assets. While overall spot crypto volumes jumped more than 47%, Ethereum spot volumes declined by 1.34%.
Derivatives data revealed that more than $200 million worth of Ethereum long positions were liquidated within a 24-hour period. At the same time, perpetual futures open interest plunged by 24.42%, signalling a rapid unwinding of leveraged exposure.
Analysts explained that elevated leverage tends to magnify price declines once markets turn lower, as margin calls force traders to either inject additional collateral or liquidate positions, creating a cascading selloff effect.
Notably, Ethereum’s liquidation volume during the session was estimated to be 2.5 times higher than Bitcoin’s, accounting for its sharper underperformance. Technical indicators also reflected stretched conditions, with ETH’s 14-day Relative Strength Index climbing to 68.6 following its weekly rally, close to overbought territory. The price also slipped below the psychologically significant $3,200 level.
Despite near-term volatility, institutional interest in Ethereum continues to build. Morgan Stanley recently submitted a filing for a spot Ethereum exchange-traded fund that would automatically stake a portion of its holdings, reinvesting staking rewards to enhance net asset value.
The proposed product follows the bank’s earlier filings for Bitcoin and Solana ETFs and would mark the first instance of a major US bank offering regulated exposure to on-chain staking rewards. Analysts view the move as structurally positive for Ethereum, as it lowers barriers for conservative investors seeking yield without the complexities of self-managed staking.
Currently, roughly 29% of Ethereum’s total supply is staked. Market participants believe ETF-based staking could significantly increase participation over time.
