• Over $16 million worth of Ethereum options liquidated in under 24 hours.
• Ethereum’s price dropped nearly 1% to $1,600 due to the liquidation.
• Ethereum’s price swings are tightly correlated with the prices of smaller altcoins.

A massive options liquidation plunge on Ethereum is sending shockwaves across cryptocurrency markets, pulling down the prices of major alternative coins. Over $16 million worth of Ether options positions flooded out in under 24 hours, signaling bears cementing control.

The ripple effects of intense selling pressure on Ethereum underscore its outsized influence over smaller altcoins, which is still tightly correlated to its price swings.

Coinglass data shows $16.7 million Ethereum liquidation

According to data tracked by Coinglass, liquidated ETH options exceeded $16.7 million on Thursday. The heavy washout came amid a broader crypto slide, with over $18.8 million in Bitcoin contracts also forced to be covered. The dual drops reveal major technical weaknesses permeating digital assets.

Ethereum suffered the most from the options unwinding, with its price tumbling nearly 1% to $1,600. But the magnitude of potential ETH losses spooked altcoin markets — sending them downward in sympathy. The selloff shows altcoins still move in lockstep with Ethereum’s volatility.

The shared pain illustrates Ethereum’s gravitational pull on altcoin valuations. When heavy liquidations rock ETH, the ripples undermine broader altcoin stability. For now, their fates remain tightly bound together.

Based on data from Coinglass, this week’s ETH washout already ranks among the highest liquidation values all quarter. While Ethereum suffered the biggest liquidation hit, its outsize influence could perpetuate pullbacks. Analysts say altcoins may face substantial headwinds if ETH selling persists. Until the heavy option unwinding subsides, these assets could remain stuck in a painful feedback loop.