ETH Bulls Stunned: Tariffs Crush the Rally!
Many traders are surprised that the price of ETH is still under selling pressure near $4,000. They anticipated that the altcoin would rise above its long-term resistance level because of the $10.16 billion in strategic Ethereum reserves and the 19-day run of spot ETH ETF inflows, which totaled $21.85 billion in holdings. However, the price of ETH dropped to $3,600 after Bitcoin’s harsh reaction to US President Donald Trump’s latest round of tariffs against Canada, Taiwan, South Korea, Vietnam, and a few more nations.
ETH Funding Rate Turns Negative for First Time Since June
According to Hyblock’s liquidation heatmap data, the price of ETH touched a long leverage liquidation level on Thursday at $3,600. Short sellers are still at danger around $3,900, where selling has been the most active this week. Given that many cryptocurrency traders interpret negative funding as a buy signal for BTC and ETH, Ether’s aggregated funding rate became negative for the first time since June 25 as a result of the liquidation of $115.8 million in ETH longs over the last five hours.
ETH Price Eyes $3,775 Rebound After Retail Investors Suffer Heavy Losses
It is evident that retail traders were disproportionately affected by the lengthy liquidations when examining the price split in greater detail by dividing the cumulative volume delta of ETH into buckets of 100 to 1,000 (retail investors) and 10,000 to 1 million (whales). Both the actual retail longs vs. shorts indicator and the anchored whales vs. retail indicator corroborate this. Both demonstrate that during the sell-off prompted by liquidation, retail traders were net long.
As of this writing, the price of ETH is poised to reclaim the $3,775 control level, and retail bull investors are buying at the bottom. In contrast, Bitcoin is having difficulty maintaining its value above $116,000.
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