Ethereum and XRP Slide Amid Crypto Market Correction Without Clear Catalyst

The cryptocurrency market experienced a sharp correction on July 24, 2025, leading to significant losses across major altcoins. Ethereum and XRP were among the hardest hit, with ETH falling 4% and XRP plummeting by 12.7% in 24 hours. 

While Bitcoin maintained relative stability, the sudden dip in altcoins has left analysts searching for explanations, as there appears to be no single driving catalyst behind the decline.

Key Takeaways

• Ethereum dropped 4% to $3,565, and XRP plunged 12.7% to $3.05.
• Bitcoin held firm with a 0.6% dip to $117,868.
• Total crypto market liquidations reached $837 million.
• Analysts point to profit-taking, leveraged liquidations, and ETF rotation as possible drivers.
• Market sentiment remains tied to macro data and institutional flows.

Ethereum and XRP Lead the Decline

According to data from The Block, Ethereum’s price fell by 4% to $3,565, while XRP suffered a more dramatic decline, down 12.7% to $3.05. The broader market followed suit, with altcoins such as BNB losing 5.3% and Solana (SOL) dropping 9.5%.

Bitcoin, by contrast, remained relatively stable at $117,868 — a minor 0.6% decrease — showcasing resilience amid altcoin volatility.

Read Also: XRP Prediction: Ripple (XRP) Price Forecasts for 2025-2050

Analysts: No Clear Catalyst, but Profit-Taking Likely

Several industry analysts agree that the sell-off may not be linked to a specific macro or regulatory trigger. Instead, it could be part of a natural market breather following recent rallies.

Min Jung, a research analyst at Presto Research, stated:

“This seems more like a breather or profit-taking event, especially considering that Ethereum is still up 7% and Dogecoin 12% over the past week, even after today’s pullback.”

Nassar Al Achkar, chief strategy officer at CoinW, echoed the sentiment:

“The sharp pullback reflects temporary profit-taking after recent rallies, compounded by leveraged liquidations and a rotation out of altcoins ahead of key ETF decisions.”

Read Also: Understanding the Ethereum Blockchain

Over $837 Million Liquidated in 24 Hours

The rapid price drops triggered widespread liquidations across multiple exchanges. According to Coinglass data:

• Total liquidations: $837 million
• Ethereum: $168 million, with $142.4 million in long positions
• XRP: $92.7 million in long positions
• Bitcoin: $73.5 million, with $57.4 million in longs

Vincent Liu, CIO at Kronos Research, pointed to "cascading liquidations and thinning liquidity" as contributing factors. Many altcoins, already fragile due to recent leverage buildups, saw long positions flushed out in a matter of hours.

Crypto liquidations happen when traders’ leveraged positions are automatically closed due to insufficient margin. It's important to note that public liquidation data may underreport the actual market impact due to API limitations and fragmented exchange reporting.

Market Watching Macro Trends and ETF News

Despite the short-term volatility, some analysts believe the long-term bullish macro narrative remains intact. According to Nick Ruck, director at LVRG Research, fading retail interest may be partly responsible for the altcoin dip, but institutional attention and macro signals remain in focus.

Min Jung added that traders are now monitoring several upcoming developments:

• Earnings reports from major tech firms
• Macroeconomic data releases
• Institutional treasury activity
• ETF approval timelines

“Crypto continues to see strong demand from corporate treasury buyers. Traders are closely watching upcoming earnings and any signals from macro data,” Jung said.

Read Also: Ethereum Inflows Hit Record $2.12B in a Week

Final Thoughts

The sharp drop in Ethereum, XRP, and other altcoins on July 24, 2025, has raised eyebrows but hasn’t fundamentally changed the underlying market outlook. 

With no definitive trigger, many view this correction as a temporary shakeout driven by profit-taking, leverage unwinding, and rotation ahead of anticipated ETF-related events.

Bitcoin’s relative stability through the pullback further highlights the growing divergence between BTC and more volatile altcoins. Going forward, crypto investors will likely continue tracking macro indicators, ETF flows, and institutional behavior to gauge market direction.

FAQ

Why did Ethereum and XRP drop on July 24, 2025?

The decline appears to stem from broad profit-taking, leveraged liquidations, and lack of a specific macro catalyst. XRP saw a larger drop due to heavier long liquidations.

How much was liquidated during the sell-off?

Over $837 million in total positions were liquidated across the market in 24 hours, including $168 million in ETH and $92.7 million in XRP long positions.

Did Bitcoin crash too?

No. Bitcoin dipped slightly by 0.6% to $117,868 but remained more stable than altcoins during the correction.

Is this the start of a bear market?

Not necessarily. Analysts believe the correction is a healthy breather after recent rallies. Long-term demand from corporate buyers and ETF anticipation remains strong.

What should crypto investors watch next?

Upcoming tech earnings, ETF developments, and macroeconomic indicators such as interest rate guidance and inflation data will be critical in shaping near-term sentiment.