The recent downturn in Ethereum's price has been largely attributed to a significant liquidation event in the futures market. A massive $329 million long position on the ETH/USDT pair was liquidated, resulting in an $11.84 million loss, marking the largest single trade liquidation in the past 24 hours. This event has triggered a cascade of sell-offs, exerting downward pressure on Ethereum's price. Despite this, Ethereum's network activity remains robust, with a surge in active addresses indicating growing interest and adoption. This increased network activity could potentially lay the groundwork for future price recovery, as more users engage with Ethereum's decentralized finance and smart contract capabilities.
The Volatility Shares Trust 2x Ether ETF (ETHU) saw a notable increase, rising 3.81% to $7.08 as of 18:20 on Saturday, February 1.