Ethereum dips below key level as Hong Kong ETFs underperform

• While a few whales are dumping ETH following its recent price decline, exchange supply data shows most investors are bullish.
• Hong Kong spot Bitcoin and Ethereum ETFs underperform issuers’ expectations on the first day of trading.
• Ethereum liquidations have exceeded those of Bitcoin.

Ethereum (ETH) experienced a further decline on Tuesday following a disappointing first-day trading volume for Hong Kong’s spot Bitcoin and ETH ETFs. This comes off the back of increased long liquidations and mixed whale activity surrounding the top altcoin.

Read more: Ethereum erases weekend gains as yearlong SEC investigation comes to light

Daily digest market movers: Whale activities, Hong Kong’s ETH ETFs, liquidations

Ethereum’s decline has triggered increased long liquidations in the past 24 hours. Here are key market movers for the largest altcoin:

Also read: Bitcoin, Ethereum Spot ETF in Hong Kong sees underwhelming response with $12 million in trade volume

• Despite high projections by issuers for Hong Kong’s spot Bitcoin and Ethereum ETFs, they underperformed widely, bringing in a total trading volume of about $12 million on their first day. This is barely a pinch compared to the $4.6 billion first-day trading volume of Bitcoin ETFs—383 times higher than that of Hong Kong.
• Following ETH’s further decline on Tuesday, its liquidations have exceeded Bitcoin’s for the second consecutive. Ethereum has seen a total of $91.76 million in liquidations compared to Bitcoin’s $68.51 million. The market decline is hitting hard on ETH long traders, who have experienced $73.62 million in liquidations.

ETH technical analysis: Key level could prove strong to prevent further decline

Ethereum saw another day of increased decline as prices slipped below the $3,000 key level on Tuesday. Considering the market has been waiting on a price trigger since the week began, the disappointing trading volume of Hong Kong’s spot BTC and ETH ETFs caused the sharp decline.

Also read: Ethereum cancels rally expectations as Consensys sues SEC over ETH security status

While short-term price movement indicates more decline, exchange withdrawals from long-term bulls could be a strong support to prevent a decline below the $2,852 key level.

ETH/USDT 4-hour chart

Hence, if ETH fails to break below this level, it may bounce up to fill up recent market inefficiencies. ETH’s recovery from this descent could see it break past the $3,300 key level to tackle inefficiencies at the $3,454 level formed on April 12. This thesis may be invalidated if a key macro event significantly affects the crypto market.