Ethereum’s Rally To All-Time High Above $2,600 Cut Short By Crypto Market Correction

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.

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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