$ETH #ETHUp70%InQ3ButLiquidityFalls
ETH gained 70% in Q3, beating Bitcoin's 42%. But a CoinGecko report flags something underneath that rally worth knowing about: ETH's liquidity, measured as market depth relative to Bitcoin, dropped to just 35-45%, down from at least 60% a year ago.
In practical terms, ETH is still tradable, most exchanges keep over $1 million in depth on each side within a tight range of the price. But that's thinner than it used to be, which means larger orders now move the price more than they would have a year ago. SOL's liquidity thinned too, falling from around $28 million to $20 million within a 2% price range.
The likely explanation is that treasury buying, like BitMine crossing 6 million ETH, and capital flowing into perpetual futures are pushing spot price up, but that money isn't landing back in exchange limit order books the way organic demand would.
For traders this means one thing practically: bigger positions in ETH right now could see more slippage than the price action alone suggests.
$ETH #Ethereum #Q3Review
ETH gained 70% in Q3, beating Bitcoin's 42%. But a CoinGecko report flags something underneath that rally worth knowing about: ETH's liquidity, measured as market depth relative to Bitcoin, dropped to just 35-45%, down from at least 60% a year ago.
In practical terms, ETH is still tradable, most exchanges keep over $1 million in depth on each side within a tight range of the price. But that's thinner than it used to be, which means larger orders now move the price more than they would have a year ago. SOL's liquidity thinned too, falling from around $28 million to $20 million within a 2% price range.
The likely explanation is that treasury buying, like BitMine crossing 6 million ETH, and capital flowing into perpetual futures are pushing spot price up, but that money isn't landing back in exchange limit order books the way organic demand would.
For traders this means one thing practically: bigger positions in ETH right now could see more slippage than the price action alone suggests.
$ETH #Ethereum #Q3Review
