Saturday, November 9, 2024
Home > News > Cryptocurrency Market > Ethereum Plunge Drives Liquidation Above $30 Million, More Pain To Come?

Ethereum Plunge Drives Liquidation Above $30 Million, More Pain To Come?

The Ethereum price saw a notable price plunge on Monday when the Ethereum Foundation reportedly started selling coins. This plunge, in turn, triggered a series of liquidation events that have seen ETH traders suffer massive losses in the last day.

Ethereum Liquidation Volumes Cross $30 Million.

By Tuesday, October 10, the Ethereum liquidation numbers triggered by the price crash ramped up quickly to cross the $32 million market. As expected, long traders suffered the majority of the losses with Coinglass data pointing to 87.61% of all ETH liquidation volumes coming from long traders.

This meant that of the over $32 million in liquidation volumes recorded for the asset in the past day, $29.56 million were from long positions. This meant that only $2.91 million in short positions were liquidated.

ETH liquidations cross $30 million | Source: CoinGlass

Ethereum also snagged the crown for the largest single liquidation event for the 24-hour period. The trade was placed on the Binance crypto exchange across the ETHBUSD pair with a total value of $4.53 million by the time the liquidation occurred.

Ethereum’s volumes also put it ahead of Bitcoin for the same time period when Bitcoin usually tends to lead liquidation volumes. In the 24-hour timeframe, Bitcoin liquidation volumes came out to $19.28 million compared to $32.48 million for Ethereum. But just like ETH, the vast majority of the liquidation volumes for BTC were from long traders.

Ethereum price chart from Tradingview.com (Liquidations)

ETH price struggles below $1,600 | Source: ETHUSD on Tradingview.com

Over 20,500 Crypto Traders Suffer Losses

The liquidation volumes over the last day have been nowhere near the highest for the year but that does not make it any less significant. CoinGlass’s data shows that as of the time of writing, 20,525 crypto traders have been liquidated for a total of $56.42 million.

Of this figure, long traders have accounted for $44.9 million in losses, and short traders for $11.48 million. Besides Bitcoin and Ethereum, the other assets that saw notable volumes were Bitcoin Cash (BCH) with $3.59 million, XRP with $2.77 million, and Solana (SOL) with $2.75 million.

The Binance exchange accounted for the largest volumes at $24.86 million, followed by the OKX exchange with $17.16 million. Next on the list is ByBit with $6.90 million, Huobi with $5.8 million, and the CoinEx exchange which rounded off the top 5 with $1.05 million.

If there continues to be any large swing in prices like what was witnessed on Monday, then the liquidation volumes are expected to continue. The only way these volumes will remain low is if assets in the market continue to trade in a tight range.

Source