• Ethereum (ETH) price dropped to $1,976 on Wednesday as cryptocurrencies pulled back.
• Bullish liquidations jumped to the highest point since March 9 and shorts liquidations were over $1.2 million.
• Ethereum’s decline coincided with outflows from several centralized exchanges and Gary Gensler’s questioning of whether he believes that Ethereum is now a financial security.
Price Drop
Ethereum (ETH) price dropped suddenly on Wednesday as more investors liquidated their positions. The coin pulled back to a low of $1,976, the lowest level since Monday this week. It has dropped by more than 8% from the highest point this week.
Liquidation
Bullish liquidations jumped to the highest point since March 9, at over $41.1 million while shorts liquidations were over $1.2 million These numbers were significantly higher than on Wednesday when bulls liquidations were just $9.6 million and shorts liquidations were at $16 million.
Centralized Exchange Outflows
The sell-off coincided with outflows from several centralized exchanges including Binance which had over $18 million of outflows in the past 24 hours and Bitfinex, Huobi, and Bybit which lost over$20 million each during the same period.
Gary Gensler’s Questioning
Ethereum price also reacted to Gary Gensler’s questioning in congressional testimony where he repeatedly refused to answer whether he believes that Ethereum is now a financial security or not due to its opaqueness of staking which could need regulation for customer protection purposes according to him.
SEC Identifies Five Coins as Securities
On Monday, the SEC identified five coins including Algorand that it believes are securities
