$1B Ethereum derivatives sold follow Trump’s comments

TLDR

Ethereum derivatives recorded a sell-off of more than $1 billion in an hour after Trump's speech on Iran. Ethereum fell more than 4% as traders increased short positions in the derivatives market. Binance received nearly $968 million in total Ethereum derivatives sales activity. The S&P 500 lost about $500 billion in market value shortly after the comments. Spot Ethereum ETFs reported net inflows of more than $7 million on April 1.

Global financial markets reacted sharply after President Donald Trump announced possible military action against Iran within weeks. Ethereum followed a broader risk-hedging move as traders rushed to exit positions. Data from CryptoQuant showed a massive sell-off in derivatives within an hour.

Ethereum derivatives quickly sell orders to record $1B

Crypto markets fluctuated sharply after Trump addressed the nation and detailed plans for an attack on Iran. He said Operation Epic Fury weakened Iran's military and reduced its missile capabilities. He also warned that intense attacks will continue in the next two to three weeks.

As a result, traders moved quickly on riskier assets and drove up US Treasury prices. At the same time, the S&P 500 wiped out about $500 billion in market value in a matter of minutes. Ethereum derivatives recorded a turnover of more than $1 billion in one hour, according to CryptoQuant.

About $968 million of that volume happened on Binance, CryptoQuant reported. Binance currently hosts the largest global crypto trading activity. The increase in orders added to short-term bearish pressure on futures markets.

As a result, the price of Ethereum has fallen by more than 4% in the same period. The sharp move reflected aggressive positioning in supported products. CryptoQuant says markets now face “times of great uncertainty and volatility.”

The firm added that price action has become “increasingly erratic and volatile”. Traders have directly responded to geopolitical developments and changing dynamics. Derivatives marked one of the biggest waves of watch sales this month.

Ethereum flows increase pressure on Ethereum

Institutional flows reflected weak sentiment for Ethereum products. Spot Ethereum ETFs posted eight consecutive days of net inflows before briefly reversing course. Over the next two periods, these funds recorded short-term gains.

However, the recovery did not continue as outflows returned. On April 1, Spot Ethereum ETF recorded a net withdrawal of over $7 million. The renewed sales are in line with rising geopolitical tensions and declining risk appetite.

Bitunix analysts describe the current environment as a change in market structure. “The market has entered a new phase dominated by ‘supply chain disruption',” he added, adding that energy, metals and geopolitics are now pushing up inflation without supporting growth.

Analysts said this volatility creates an imbalance between the cost of risk and economic support. He explained that asset prices now primarily respond to liquidity conditions. Markets lack a clear policy anchor or path out of conflict, he said.

Ethereum derivatives data and ETF flows both show increasing pressure on trading positions. As headlines intensified in global markets, traders reduced their exposure. The latest ETF flow data on April 1 indicated the most recent confirmed movement in institutional positioning.