Ether's Liquidity Drop Contrasts with Strong Q3 2026 Price Rally

Ether's price surged 70% in the third quarter of 2026, significantly outperforming Bitcoin's 42% gain. Despite this strong rally, Ether's market liquidity unexpectedly thinned, a trend that caught many off guard. CoinGecko's report revealed that Ether's median daily market depth dropped to just 35%-45% of Bitcoin's level, a stark decline from at least 60% a year earlier.

Market depth, which measures the amount of buy and sell orders within a specific price range, is a key indicator of liquidity. For Ether, depth within 0.15% of its market price ranged from $13 million to $14 million, suggesting a relatively liquid market at this range. However, the overall thinning of order books contradicts the typical expectation that rising prices attract more traders and deepen liquidity.

Other major cryptocurrencies also showed varying liquidity trends. SOL's market depth within 2% of its price fell from approximately $28 million to $20 million year over year, indicating a considerable shrinkage in liquidity. In contrast, XRP maintained stable depth near $30 million, with a noticeable buyer skew in its order books.

These findings highlight a broader trend of declining liquidity in the crypto market, particularly for Ether, despite its strong price performance. The data suggests that market dynamics are complex and not always predictable, even during periods of significant price movements.