Ether price dropped 14% as the entire crypto market sold-off, but derivatives data points to a silver lining.
Ether (ETH) price faced a substantial 14% correction on Jan. 3, as the price dropped from $2,380 to $2,050 in less than 2 hours. This price level had not been seen since Dec. 1, 2023 and the unexpected swing led to the liquidation of $100 million worth of ETH long future contracts, which were leveraged bets on the price increase.
Traders are now questioning the significance of this price correction and whether it signals the end of the bullish momentum following three unsuccessful attempts to break above $2,400 in the past month. Coincidentally, this was also the third time that Ether's price dropped below $2,150 during the same period, making it hard to argue that the bullish momentum is over.
The first noteworthy observation from the price chart is the swift recovery to $2,230 on Jan. 3, suggesting that whatever triggered the panic selling and derivatives liquidations has weakened. Some argue that the trigger was a market analysis released on Jan. 3 pointing to the denial of the spot Bitcoin ETF, published by Matrixport. Notably, the digital assets platform Matrixport was co-founded by Jihan Wu, who is known for his highly successful venture in the ASIC miner business at Bitmain.
