The prices of many cryptocurrencies have fallen sharply again since yesterday. Ethereum and its ecosystem have been hit especially hard by the correction.

Tonight there was another sharp correction in the crypto sector. According to data from Coingecko, the sector's total market capitalization fell 4.2%. Within an hour, about $100 million in trading positions were liquidated. Especially Ethereum and tokens from the ecosystem are hit hard.

ETH lost about 8% in the past 24 hours and stands at $3,170 at the time of writing. Hardest hit in the top-100 are the Memecoin Brett, Lido's LDO token and the Ethereum Name Service (ENS). All three lost about 10%. Bitcoin, meanwhile, is holding up better, falling "only" 2.8% on a daily basis so far.

For Ethereum, the crash probably feels like a déjà-vu. Because massive outflows from Grayscale's converted ETHE funds are pushing the price down further. Bitcoin underwent same fate after launching its ETF in January. According to data from Farside Investors flowed $326 million out of Grayscale's ETHE yesterday. In total, ETH ETFs recorded net outflows of $133 million.

ETF trading volume reached for the second day in a row more than $1 billion. The reasons for the broader wave of sales in the market are unclear. However, it could be related to record losses in the traditional market. For example, the Nasdaq tech index lost more than 3% in a single day.

The S&P500 was also hit hard by more than 2%. It is the largest daily correction of the indices since 2022.

More than a trillion dollars of market capitalization disappeared in traditional markets yesterday. In Japan, the NIKKEI 225 already lost more than 2% at today's trading start. Whether this is already a sign of a general withdrawal from risky assets remains to be seen. Possibly the correction could also lead to a rotation to smaller tech and crypto assets.