Ethereum
$50 Million Ethereum Liquidations – Here’s What Traders Need to Know
- Long and short positions have had a turbulent time after the ETH price rose and fell.
- Profit taking increased, indicating that the value could fall below $3,400.
High market volatility led to market liquidations that reached $215 million. Out of that, Ethereum [ETH] the contracts were worth $50.61 million, according to Coinglass data.
Liquidations occur when a trader does not have sufficient margin balance to maintain an open position. Forced closure is necessary to avoid further losses.
Stormy season for the market
For ETH, the highest liquidations could be linked to the price of the cryptocurrency. A look at the price action revealed that it had fallen to $3,368 at one point on June 14. Later, the value rose to $3,512, before settling above $3,500 at press time.
Due to these price fluctuations, long and short positions were not spared. Long positions refer to traders betting on the price of an asset to rise. Shorts, on the other hand, are traders whose stake is a drop in prices.
Source: Coinglass
However, traders seemed to expect prices to depreciate. This is due to the Put/Call ratio ahead of Friday’s options expiration. According to Deribit, the derivatives exchange, Ethereum’s Put/Call ratio was 0.37.
The ratio being less than 0.50 means that expectations were bearish. However, it does not appear that participants anticipated the high level of volatility.
In terms of price, AMBCrypto also looked at the profit made. As the name suggests, this means the total of all coins moved whose last price was lower than its value at the time of the squeeze.
ETH plans to hover between $3,400 and $3,600
On June 12, ETH Profit made was $55.18 million. By June 14, the value had risen to $104. 58 million. An increase in this metric implies that holders are making profits, which could cause prices to fall on the charts.
However, if the metric stabilizes, selling pressure decreases across the market. For Ethereum, the profit made seems to have stabilized around the aforementioned value. Therefore, it is likely that altcoins will trade between $3,400 and $3,600 over the next few days.
Source: Glassnode
AMBCrypto also analysis Trade entries and exits to gauge ETH’s next move. Exchange flows track the number of coins sent to exchanges.
If it increases, it means holders are considering selling. When this happens, the price of a cryptocurrency generally decreases. Foreign exchange outflows, on the other hand, measure the number of coins sent outside exchanges.
At press time, ETH exchange inflows stood at $34,400 while altcoin outflows were 24,100. The difference in flows implied that there were more ETH for sale than those retired in cold wallets.
Source: Santiment
Read Ethereum [ETH] Price prediction 2024-2025
If this continues, the price of the cryptocurrency could fall below $3,400, as it did on June 14. On the other hand, a decline in selling pressure could halt this decline and ETH could continue to consolidate on the charts.