Ethereum Recent Market Decline Driven By Capitulation, Analysts Claims – Here’s Why

Over
the
weekend,

Ethereum,
the
second
largest
digital
asset,
took
a
hit
as
its
price
fell
significantly,
triggering
broader
negative
sentiment
around
the
crypto
asset
and
the
factors
that
could
be
responsible
for
the
dip.
Delving
into
the
matter,
popular
crypto
analyst
and
trader
Michael
Van
De
Poppe
has
offered
insights
on
the
recent
price
action
of
ETH,
attributing
it
to

Capitulation.

Ethereum
Price
Fall
Due
To
Capitulation

The
well-known
market
expert,
Michael
Van
De
Poppe,

provided

his
insights
on
Ethereum
with
the
crypto
community
on
the
X
(formerly
Twitter)
platform.
His
perspective
points
to
the
substantial
sell-off
pressure
and
traders’
panic,
which
has
played
a
part
in
ETH’s
collapse.

According
to
Van
De
Poppe,
since
the
listing
of
the
spot
Ethereum
Exchange-Traded
Funds
(ETFs),
ETH
has
been
exhibiting
notable
weakness
in
the
preceding
weeks,
falling
to
a
new
low
for
the
first
time
in
six
months,
thereby
mirroring

Bitcoin‘s
movement.

Van
De
Poppe
believes
Grayscale’s
Trust
ETHE
huge
outflows
following
the
launch
of
the
spot
ETH
ETFs
have
greatly
impacted
the
products
negatively,
causing
weakness
in
ETH.
On
day
one
of
trading,
Poppe
noted
that
Grayscale
witnessed
an
outflow
of
over
$400
million,
but
as
of
last
Friday,
that
amount
has
fallen
to
about
$60
million.

He
further
points
to
Jump
Trading’s
massive
liquidation
strategy,
as
the
company
was
cited
for
offloading
over
$500
million
worth
of
Ethereum
under
2
days
after
spot
ETH
ETFs
were
listed,
and
they
have
continued
doing
so
throughout
the
weekend.

Although
Van
De
Poppe
considers
these
factors
to
be
the
major
reasons
for

ETH‘s
recent
weakness,
he
believes
that
the
developments
are
happening
due
to
the
capitulation
in
the
past
two
weeks,
which
has
likely
come
to
an
end.

Van
De
Poppe
classified
the
recent
significant
decline
to
capitulation
since
it
is
often
used
to
describe
such
a
severe
correction
in
which
double-digit
losses
occur
over
a
brief
period
of
time.
In
addition,
the
analyst
stated
that
he
would
rather
see
such
a
significant
correction
because
it
suggests
that
the
downtrend
is
almost
over.

Economic
Turmoil
Fuels
The
Crypto
Asset’s
Dip

As
Ethereum
continues
to
drop,
Van
De
Poppe
has
pointed
out
several
negative
developments
around
the
world
that
may
have
accelerated
the
decline
in
the
previous
weeks.
The
first
trigger
underscored
by
the
analyst
is
former
US
president
Donald
Trump
losing
in
the
battle
for
the
Presidential
seat
with
VP

Kamala
Harris,
as
Harris
begins
to
earn
more
votes
in
the
polls.

The
second
development
highlighted
by
Van
De
Poppe
is
the
ongoing
war
between
Israel
and
Gaza,
which
has
grown
stronger
because
of
the
death
of

Hamas‘
leader
in
Iran.

Other
triggers
include
the
multiple
stabbings
taking
place
in
the
UK,
the
growing
demand
for
rate
cuts
as
a
result
of
terrible
economic
data
on
the
labor
market
released
on
Friday,
and
Japan
experiencing
its
worst
day
on
the
stock
market
since
1987’s
Black
Monday.

Featured
image
from
iStock,
chart
from
Tradingview.com