Cointelegraph reported that the recent significant decline in Ethereum's price might be attributed to excessively high long positions in perpetual futures markets and the leading role of leveraged traders in liquidation activities within the Asian market. As the US Securities and Exchange Commission approved the 19b-4 application for exchange-traded products of physical Ethereum in the US, traders increased their positions, anticipating further price hikes. However, following this approval's implementation in July, on August 4th, Ethereum's price plummeted by 7.6% within just three minutes, with a total liquidation amount of $340 million in perpetual futures, indicating that some long positions were liquidated, accelerating the price drop. This sell-off primarily occurred during the overnight US trading session, with significant discounts between Binance and Coinbase's spot prices. The liquidation activity seems to have been predominantly driven by leveraged traders in Asia.