$ETH

Reason for collapse:

*Major Sell-off by a Large Holder: A significant factor appears to be a large sell-off of ETH by a wallet associated with a digital asset firm linked to a prominent figure. This entity reportedly dumped over 5,400 ETH, worth around $8 million, just before the price crash. This action may have acted as a primary catalyst for the decline.

*Macroeconomic Factors and Trade Tensions: Broader economic pressures and global trade tensions, particularly those stemming from US tariff policies, have created a risk-off sentiment in financial markets. Cryptocurrencies, being considered higher-risk assets, tend to suffer in such environments.

*Whale Activity and Liquidations: Large holders offloading their ETH holdings can put downward pressure on the price. Additionally, there have been significant liquidations of long positions on leveraged crypto markets, including a substantial amount in ETH, further contributing to the price drop.

*Bearish Technical Indicators: Technical analysis indicators such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have been indicating persistent bearish sentiment, suggesting a continuation of the downward trend was possible.

*Weak ETF Demand: Lower than anticipated inflows into spot Ethereum ETFs in the US suggest fading institutional interest, which can negatively impact price.

*Diminishing Network Activity: Ethereum's on-chain activity, including unique active wallets and transaction volume, has been declining in the past month, while competitors have seen increases. This suggests potentially weakening demand for the Ethereum network.

*Ethereum Below Realized Price: ETH has fallen below its realized price (the average price at which ETH coins were last moved), which is historically seen as a bearish on-chain signal that can trigger further sell-offs.