Ethereum, the world's second-largest cryptocurrency, took a nosedive over the weekend. The price plunge sent shockwaves through the crypto community. Shock is definitely the right word for it.
Crypto analyst Michael Van De Poppe shared his take on X. He reckons it's all about capitulation. That's a fancy way of saying panic selling, and that is exactly what is going on right now as many market participants are unable to withstand the pressure. Panic selling is good for whales and long term holders. It's definitely not good for everyone else.
ETH has been looking shaky for weeks. It's now at a six-month low. Bitcoin's been doing the same dance.
Van De Poppe points to Grayscale's Trust ETHE as a culprit. It's seen massive outflows since spot ETH ETFs hit the market. Day one saw $400 million walk out the door. By Friday, it was down to $60 million.
Jump Trading's also been dumping ETH like it's going out of style. They offloaded $500 million in just two days after the ETFs launched. The sell-off continued through the weekend.
"This is capitulation," Van De Poppe declared. He's not too worried, though. In his view, it means the downtrend's nearly done.
But it's not just crypto drama driving the dip. The world's gone a bit bonkers lately. Trump's trailing Harris in the polls. The Israel-Gaza conflict's heating up. The UK's dealing with a spate of stabbings.
Economic data's not looking great either. There's growing pressure for rate cuts. Japan just had its worst day on the stock market since 1987's Black Monday.
All this chaos is feeding into the crypto sell-off. It's a perfect storm of bad news and jittery investors.
So, what's next for ETH? Van De Poppe's betting the worst is over. But in the wild world of crypto, anything can happen. Buckle up, folks. It might be a bumpy ride.