Plunging ETH volume increases pressure on long positions

A sharp decline in ETH trading volume could force traders to liquidate their long positions, according to an analysis from cryptocurrency services provider Matrixport. The firm noted that while ETH spot trading volume plummeted from $122 billion to $41 billion this week, futures open interest has barely decreased. Matrixport suggested that this situation could lead some traders to abandon their leveraged long positions. Meanwhile, the analysis also pointed out that the net asset value (NAV) of companies that strategically invest in ETH is close to one, indicating that investors are unwilling to pay a premium for these companies' shares.