• Ethereum (ETH) price dropped to a low of $1,976 on Wednesday due to high bullish liquidations.
• The amount of bullish liquidations jumped to over $41.1 million while shorts liquidations were at $1.2 million.
• Ethereum’s decline also coincides with outflows from several centralized exchanges and Gary Gensler refusing to answer whether he believes that Ethereum is now a financial security.
Ethereum Price Drops Sharply
Ethereum (ETH) price dropped suddenly as more investors liquidated their positions. The coin pulled back 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.
Bullish Liquidations Reach Highest Point Since March 9
The amount of bullish liquidations jumped to over $41.1 million while shorts liquidations were at $1.2 million – significantly higher than on Wednesday when bulls liquidations were just $9.6 million and shorts liquidations were at $16 million. In most periods, cryptocurrencies jump when short-sellers start liquidating their coins and vice versa.
Centralized Exchanges Record Outflows
Ethereum price also reacted to outflows from several centralized exchanges such as Binance which had over $18 million of outflows in the past 24 hours; Bitfinex, Huobi, and Bybit lost over $20 million each during the same period..
Gary Gensler Refuses To Answer About Ethereum Security Status
In congressional testimony on Tuesday, Gary Gensler refused to answer whether he believes that Ethereum is now a financial security despite saying in a previous interview that he believes proof-of-stake coins are securities due to opaqueness in staking processes which should be regulated for customer protection..
Ethereum Price Prediction
According to CoinGlass, the daily chart shows that ETH price has been dropping gradually since April 14th when shorts liquidation peaked at more than 62$8 million – meaning there could be further downside potential for Ethereum if the current trend continues..