Ethereum Drops 4.7% to 3969 USD, Market Cap Falls 140 Billion USD

The cryptocurrency market has been experiencing a sustained sell-off, with Ethereum's price falling below 4000 USD, marking a seven-week low. This decline is part of a broader market downturn that has seen the total market capitalization evaporate by over 140 billion USD since the beginning of the week. The sell-off has affected major cryptocurrencies, including Bitcoin, which also saw a decline.

On Thursday, Ethereum, the second-largest cryptocurrency, dropped by 4.7% to 3969 USD, while Bitcoin decreased by 1.7%. This downward trend in Ethereum's price is attributed to a slowdown in institutional inflows and technical signals indicating short-term pressure. Investors have withdrawn nearly 300 million USD from Ethereum exchange-traded funds (ETFs) listed in the United States since Monday. This withdrawal coincided with a sudden market downturn that wiped out 17 billion USD in long positions, affecting most major tokens.

Analysts suggest that if Ethereum's price falls below 3800 USD, further liquidations are likely to occur. The broader market sell-off has been driven by a combination of factors, including concerns over regulatory pressures and macroeconomic uncertainties. The sudden withdrawal of funds from ETFs and the liquidation of long positions have exacerbated the market's volatility, leading to a significant drop in prices across the board. The situation highlights the ongoing challenges faced by the cryptocurrency market, as it continues to grapple with regulatory scrutiny and market volatility.