Ether's value has taken a dip today, experiencing a decline of over 9% from April 1 to April 5, hovering around the $3,300 mark. This decline mirrors Bitcoin's movement, which dropped below $70,000 on April 1, experiencing a 5% decrease over the same period.

The drop in Ether's price can be attributed to several factors, including a surge in liquidations in the broader crypto derivatives market, reduced volume and Total Value Locked (TVL) on the Ethereum network, and an increase in Ether's supply on exchanges due to whale activity.

The decline in Ether's price was accompanied by an increase in liquidations in the altcoin's derivatives market. Coinglass data reveals that over $50.7 million in Ether long positions were liquidated in the past 24 hours, with $24.7 million wiped out in the previous 12 hours. Additionally, a total of $264.7 million in leveraged positions across the crypto market, with $185 million belonging to long positions, were liquidated.

The decrease in Ether's price aligns with a decline in volume on the Ethereum network, which has fallen by 10% over the last week. This decrease in network volume follows the deployment of the Decun upgrade on March 13. Corresponding to Ether's price drop is the reduction in the Ethereum network's TVL, which has fallen by 1.5% in the last 24 hours and 5.5% over the week, standing at $47.9 billion currently, significantly lower than its all-time high of $106 billion set on November 13, 2021.

Large Ethereum investors have been reducing their ETH holdings in anticipation of short-term price declines. Data from Santiment indicates a decrease in the percentage of wallets holding between 10 million and 100 million ETH, from 30.56% on March 30 to 27% on April 5. Similarly, the percentage of wallets holding between 1 million and 10 million ETH has seen a notable decrease from 7.6% to 7% over the last seven days.

The decline in Ether's price is further supported by an increase in ETH deposits on exchanges, indicating an intention to sell. Glassnode data shows a rise in deposit transactions to known exchange wallets, especially on March 26 when ETH price dropped below $3,600, and continued on April 3 when ETH slid below $3,200, with the number of transactions increasing from 20,419 to 35,887 on April 5.

Moreover, an increase in large transactions transferring Ether to exchanges has been observed. On April 5, Whale Alert flagged several transactions transferring significant amounts of Ethereum from self-custody wallets to exchanges. For instance, one holder transferred 9,840 ETH worth $32.25 million from an unknown wallet to the Coinbase crypto exchange, while another deposited 22,975 ETH worth $76.5 million from an unknown wallet to Coinbase Institutional.