Ethereum (ETH) balance on exchanges hits 3-month high amid major price plunge

The global financial markets, including cryptocurrencies, were on a free fall after Russia invaded Ukraine. Ethereum (ETH/USD) was one of the worst-hit tokens, having plunged by around 13% in just 24 hours.

Ethereum suffered from intense selling pressure, which saturated the amount of Ethereum available on exchange platforms. The supply of Ethereum on exchanges currently sits at a three-month high following this sell-off.

ETH supply on exchange at three-month high

On Thursday, Bitcoin (BTC/USD) spearheaded the crypto market bloodbath with a dip to $34,000. This is the first time Bitcoin has touched these lows since June 2021. Ethereum dropped by double-digits, and the growing uncertainty in the Russia and Ukraine crisis fuelled the selling pressure further.

According to Glassnode, the amount of Ethereum sitting on exchange is currently at a three-month high. According to the report, exchanges hold a total of 14,795,397.786 ETH.

The total liquidations across the global cryptocurrency market were around $200 billion, as the global market cap dipped below $1.7 trillion. Additionally, Ethereum’s liquidations were nearly as much as Bitcoin liquidations. However, these dips were expected, as geopolitical tensions usually trigger fear and uncertainty in the financial space.

However, this plunge weakened the argument that Bitcoin is preferred to hedge against inflation. The coin’s performance was similar to the stock market, following an increased correlation between the two sectors. Bitcoin’s plunge was also the opposite of gold’s performance within the same period.

Crypto markets recover

The cryptocurrency market is currently on a healthy recovery after yesterday’s plunge. Traders that bought during the dip are already making gains from the accumulated coins. Bitcoin is spearheading the recovery with a 10% gain to around $38,500. Ethereum has also jumped by 12% to above $2600.

Terra is the largest gainer among the top-ten coins, with a 23.07 jump in just 24 hours. Binance Coin, XRP and Cardano have gained 8.48%, 9.32% and 9.54%, respectively. Solana and Avalanche have also gained by 9.70% and 13.47 respectively. The global market cap has surged by 9.63% to $1.72 trillion at the time of writing.

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