Ethereum Price Crashes as $667 Million Liquidation Wave Hits Market: Details

The crypto market extended its selling early Tuesday with the Ethereum price dropping back below $3,000 after falling nearly 6% in 24 hours.

The majority of cryptocurrencies traded in red at press time, with $667 million leveraged positions liquidated across the market in the last 24 hours, according to CoinGlass data. Ethereum saw a larger liquidation than Bitcoin in the last 24 hours, recording $246 million, while Bitcoin saw $206 million.

Recently released jobs figures, which were hitherto delayed due to the government shutdown, showed a net loss over the past two months. A total of 64,000 jobs were added in November, while the unemployment rate rose to 4.6%, a four-year high compared to expectations of 4.4%. As for October, employment fell by 105,000 versus 119,000 jobs added in September.

U.S. spot Bitcoin and Ethereum exchange-traded funds lost a combined $582 million in net outflows on Monday, the most since Nov. 20, as crypto markets fell. Ethereum ETFs saw $224.8 million exit in a third day of withdrawals, according to data from Farside.

Ethereum price action

At press time, ETH was down 6.93% in the last 24 hours to $2,918 and 6.36% weekly. Ethereum has steadily declined since a high of $3477 on Dec. 10, marking five out of six days in losses since this date, today inclusive.

Recent news about JPMorgan Chase launching its first tokenized money-market fund on Ethereum failed to lift its price as Ethereum fell to a low of $2,874 on Tuesday.

JPMorgan Chase is launching its first tokenized money-market fund on Ethereum, My OnChain Net Yield Fund (MONY), with an initial $100 million investment, a move which crypto bull Tom Lee says is bullish for ETH. 
The $4 trillion U.S. bank joins financial heavyweights, including BlackRock, Franklin Templeton and Fidelity, which have launched tokenized MMF on-chain.

What to watch

A key event this week is the release of the November Consumer Price Index report on Thursday, which is expected to show that overall inflation rose to 3.1% year-over-year. Thursday will also bring the latest weekly numbers for a number of new applicants claiming unemployment insurance.

Investors are pricing in a 75% probability that the Federal Reserve will hold rates steady at its January meeting, corresponding with the current uncertainty in the markets.