Grey release analysis points out that one of the reasons for the relatively large decline in the price of Ethereum appears to be the excessive number of long positions in perpetual futures. In May 2024, as the Securities Exchange Commission (SEC) approved the issuer's 19b-4 application for the US spot Ethereum exchange-traded product (ETP), traders significantly increased their total positions in perpetual futures, perhaps in anticipation of further price increases following full regulatory approval; this approval took place in July 2024, and the US spot Ethereum ETP began trading shortly thereafter. During the recent decline, some long positions were liquidated, accelerating the price decline. On August 4, the price of Ethereum fell by 7.6% in just three minutes, and the total clearing of perpetual futures on that day alone reached $340 million. With the sell-off taking place during overnight trading hours in the United States and the large discount between Binance and Coinbase spot prices, the clearing appears to be dominated by leveraged traders in Asia.