Ethereum at Risk of Further Losses After $1B Derivatives Sell Pressure

Key Insights

• Ethereum recorded over $1B in ETH derivatives selling volume within one hour. Traders reacted sharply after Trump’s speech. Global markets had expected him to deliver a de-escalation message on the Iran conflict.
• The crypto exchange market structure remained highly concentrated and was structurally driven by derivatives trading.
• BlackRock has moved 1,360 BTC worth 90.28 million and 15,103 ETH valued at 30.82 million into Coinbase Prime. Another looming sell pressure.

A potential de-escalation speech from President Donald Trump could not stop the high sell volume in the market. The two warring parties seem not to have come to an agreement for a ceasefire, as conditions are yet to be met.

Ethereum (ETH) was among the most sold tokens in the market, particularly in the derivatives sections. T

The altcoin is struggling to stay above the psychological level of $2,000, with spikes slightly below the level increasing recently. Is Ethereum bracing for more losses amid increasing fear among participants?

Derivatives Sell $1B ETH After Trump’s Speech

As per CryptoQuant, Ethereum hit a sell volume of $1 billion on Binance’s derivatives section. The volume exceeded that of March 27, which almost reached $900 million.

Sharp volume spikes have resulted in massive price rallies or crashes, depending on the underlying action from traders. That volume fueled a 5% correction in the altcoin’s price action, which had jumped to around $2,200.

This mass selling happened as traders anticipated a positive speech from Trump concerning the Israel-Iran war. However, Trump insisted they would proceed for the next three weeks until they achieved their objective, escalating geopolitical tensions.

Trump’s negative news boosted demand for US Treasury bonds. At the same time, the S&P 500 lost over $800 billion in market capitalization. The stock market heatmap was red, with Nvidia, Apple, Amazon, Google, Microsoft, and Tesla dropping the hardest.

How the Derivatives Market Is Running the Entire Crypto Market

As the crypto market continues to face the impact of war, the derivatives market seems to be not only driving Ethereum. The derivatives market share was more than the spot. market on popular exchanges.

The data indicated that derivatives traders were responsible for the sharp drops. That suggested that leverage was amplifying the losses seen in the broader crypto market.

For instance, Binance’s derivatives market share of $29 billion was responsible for about 30% of the global crypto volume. The spot market share was about 27%, which was equivalent to $27 billion. This indicated that traders on the Binance exchange were driving the markets.

A clear distinction was seen on OKX where derivatives volume was more than 2x that of spot. The exchange’s activity was $12 billion on derivatives and $5 billion in its spot market. This was repeated on exchanges like BitMart, Gate, Bybit, and KuCoin.

Some exchanges showed different observations. Their volumes were minor and included LBank, Crypto.com, MEXc, Upbit, and Bitfinex. In short, the sharp selling pressure experienced in crypto was being leveraged.

BlackRock Adds Sell Pressure To A Weak Market

Additionally, institutions were selling, suggesting Ethereum holders could face further losses. Recent on-chain data showed that BlackRock was selling even as it holds the largest spot crypto fund.

About 1,360 BTC worth $90 million and 15,103 ETH valued at $30 million were deposited into Coinbase Prime.

The transactions were done in portions of $10 million and $20 million worth of crypto. This move often precedes offloading, which suggests that the underlying assets could decline further.

Markets face extreme uncertainty from the war. The existing bear market structure since December signals more losses ahead. Still, these drops could initiate rallies as markets tend to bounce after capitulation.

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