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Over $55 Million In Longs Liquidated As Price Plummets

The recent price action of Ethereum has not been so much of a breeze. The second-largest cryptocurrency by market cap experienced a surge that nearly reached its all-time high, only to be met with a sharp reversal, leaving long traders licking their wounds.

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Bulls Take A Hit, But Sentiment Remains Positive

The past few days have seen a significant decline in Ethereum’s price, dropping from $3,880 to around $3,735. This has resulted in substantial liquidations for long traders, exceeding $55 million in the last three days compared to only $16 million for short positions.

Source: Coinglass

Despite the dip, technical indicators paint a bullish picture. The price remains above the short moving average, and the Relative Strength Index (RSI) sits comfortably above 60, suggesting a strong underlying trend.

The funding rate, which reflects the cost of borrowing and lending cryptocurrency, provides further evidence of bullish sentiment. It has remained positive, currently at 0.014%, suggesting that buyers are still dominant and expect the price to rise further.

Ether market cap currently at $448 billion. Chart:

Open Interest Soars, Signaling Sustained Investor Interest

While the price has dipped, investor interest in Ethereum remains robust. Open Interest, which reflects the total amount of outstanding futures contracts, reached a peak of $17 billion on May 28th, the highest level in over a year. This indicates that despite the recent volatility, investors are still heavily engaged with Ethereum and believe in its long-term potential.

The price of Ethereum has been up in the last 24 hours. Source: Coingecko

Ethereum Price Forecast

Meanwhile, Ethereum’s current price prediction of $3,940 by June 30th suggests a potential 2% increase. While the technical indicators remain neutral, the high Fear & Greed Index of 73 indicates a prevailing sense of greed among investors. This could fuel further price movement in the short term.

Source: CoinCodex

Looking at the recent performance, Ethereum has experienced a moderate amount of volatility with 57% green days over the past month. This suggests a potential for continued upward momentum, especially considering the significant price increase since the cycle low of $897. However, it’s important to remember that the market is dynamic, and corrections can occur even in bullish environments.

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Overall, the technical analysis paints a mixed picture for Ethereum. While the neutral sentiment and recent price dip might raise some concerns, the high Fear & Greed Index and strong performance since the cycle low suggest potential for further growth.

Featured image from Pexels, chart from TradingView