Ether crashes below $3,000 amid US recession fears

Ether price plunged by 5% in the last 24 hours taking it below $3,000 as the broader crypto market also declines. ETH is on a streak of losses due to increased selling pressure in the industry triggered by the unimpressive US jobs report.

The global crypto market has felt the impact of the increasing US unemployment rate, which jumped from 4.1% to 4.3% last month, signaling the early stages of a recession. The cumulative crypto market cap dropped by more than 4% over the last day to stand at $2.2 trillion.

Ether ETF outflows continue

Despite gaining major approval for Ether-linked exchange-traded funds (ETFs) from the SEC, Ethereum’s price has plunged by almost 10% in the last 30 days. This was after the second-largest crypto by market cap saw a run-up to the $3,500 mark due to the buzz around the ETFs’ launch.

Massive outflow reports from freshly launched Ether ETFs have added to the selling pressure. Data shows that ETH ETFs recorded a net outflow of $54.27 million on August 2. However, the cumulative outflow had reached $510.7 million depicting a big sell-off.

Grayscale ETHE reported an outflow of $61.43 million in the last 24 hours and $2.12 billion till now. Fidelity’s FETH witnessed an inflow of $6.02 million, while, Franklin’s EZET reported a positive flow of $1.14 million on August 2.

Ethereum and other altcoins endure slump 

Ether price slumped by 9% over the past 7 days, reflecting investors’ sentiment. ETH is trading at an average price of $2,990, at the press time. It is still up by 31% on the year-to-date period.

Coinglass data shows that over $80 million worth of long and short positions on Ethereum price action got liquidated in the last 24 hours. $71.60 million worth of liquidated bets (89%) turned out to be long positions. This indicates that traders were hoping for a price surge before a bearish wave swept through the market.

Other major altcoins join Ethereum in the red zone as the Fear and Greed Index flashed a Neutral indicator, dropping below 50 points. Solana (SOL) and BNB prices dipped by 6% and 8%, respectively. BNB has now taken a major lead ahead of SOL to maintain its position as the 4th-largest crypto by market cap. Solana dipped by 18% in the last 7 days.

Top meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) declined by 16% and 14%, respectively, over the past week. PEPE and WIF posted a dump of 22% and 35%, respectively, in the same period.