What Happened: Ethereum (CRYPTO: ETH), the second-largest cryptocurrency by market cap, rallied to an all-time high of $2,641 on Thursday before a steep correction across crypto markets forced it down to $2,100.
The cryptocurrency was trading at around $2,337 at the time of writing, and trading volume was up 29% over a 24-hour period.
Why It Matters: A massive selloff likely triggered by over-leveraged trader positions saw massive liquidations across a number of cryptocurrency exchanges.
Data from CoinMarketCap shows that the overall value of the crypto market fell by $250 billion, taking total market capitalization to $1.85 trillion.
Amidst the selloff, several reports emerged that a trader on Coinbase sold 20,000 ETH, which amounts to $46 million in a span of just four minutes.
Someone just did 10 consecutive sells of 2,000 $ETH on Coinbase, 20,000 ETH total.
Approximately $43 million sold in about 4 minutes. pic.twitter.com/OoxQD6ckOw
— Jonny Moe (@JonnyMoeTrades) April 23, 2021
Despite Ethereum’s retracement in price, market proponents remained bullish on the digital asset.
The cryptocurrency’s on-chain fundamentals looked optimistic, as the number of addresses holding Ethereum reached an all-time high, coupled with high levels of outflows from exchanges.
The network also settled $1.5 trillion worth of transactions in Q1 alone, far exceeding its transactions settled in 2020.
See also: How to Stake Ethereum
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