Ethereum faced a 20% decrease in risk reversal on Tuesday due to concerns over the recent crypto market crash. Long positions in ETH worth $67.37 million were liquidated in the past 24 hours as short traders took control. Glassnode provided insights into the Ethereum issuance reduction proposal, which has sparked criticism within the crypto community.
The price of Ethereum briefly dropped below $3,000 on Tuesday amidst tensions surrounding a potential Iran-Israel conflict and the impact of Hong Kong’s spot ETH approval. Despite this price drop, attention has shifted to the ETH issuance reduction proposal following a report from research firm Glassnode.
Key market movers in the crypto space include a 20% decrease in ETH risk reversals, an increase in discussions around ETH following the Hong Kong spot ETF approval, and over $81.9 million in liquidations in the past 24 hours, with $67.4 million coming from liquidated long positions.
Glassnode highlighted criticisms of the Ethereum Foundation’s proposal to reduce ETH issuance, emphasizing the potential wealth transfer implications and the impact on governance within the Ethereum ecosystem. Technical analysis suggests that ETH may trade below $3,301 in the near term, with factors such as the Bitcoin halving, geopolitical tensions, and regulatory decisions affecting its price movement.
Ethereum is currently trading around the $3,000 support level, with potential for both bullish and bearish trends depending on market developments. Staking, a process where investors lock their assets to earn rewards, plays a significant role in Ethereum’s transition to a Proof-of-Stake mechanism for improved security and scalability.