Analysis of the reasons for Ethereum (ETH)'s price drop today and market dynamics
Ethereum (ETH) price fell today, why? The market faces multiple challenges, and relevant data shows that its annual growth has weakened. Recently, Ethereum's EIO was negative, indicating a loss of 42% of annual returns in the past four months.
On September 7, the price of Ethereum fell by nearly 4%, and a total of 10% this month. Affected by the US non-farm payroll data that was lower than expected, the overall decline in the crypto market, coupled with the sharp increase in outflows from the Grayscale Ethereum ETF, showed a lack of institutional interest in Ethereum.
Analysis pointed out that in the past 30 days, the net flow of Ethereum on centralized exchanges was negative $856 million, which reflects the lack of demand from retail investors. Futures traders have also adopted a shorting strategy for the current price trend, which has gradually increased open interest.
At the same time, the liquidity of the Ethereum market has declined significantly since June 2024. For the 5% market depth indicator, this change may lead to higher slippage, making trading more difficult. Therefore, unless retail interest and trading volume recover, it will be difficult for Ethereum prices to regain their upward momentum.
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