ETH leads crypto liquidations with $140 million
ETH witnessed a significant 8% price drop
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been at the forefront of recent crypto market sell-offs.
In the past 24 hours, ETH witnessed a significant 8% price drop, which contributed to over $710 million in total liquidations across the cryptocurrency market.
Key takeaways
- Massive ETH Liquidations: Ethereum led the way in crypto liquidations, totaling $700 million, with $140 million in ETH liquidated.
- BTC Followed Behind: Bitcoin (BTC) saw $132 million in liquidations, significantly lower than Ethereum’s figures.
- Sell-Off by Whales and Institutions: Both retail traders and institutional investors contributed to the large-scale liquidation.
Ethereum price fell 8%, leading $710 million in crypto liquidations
Ethereum's sharp8% decline has sparked massive liquidations, particularly in its long positions.
Coinglass data revealed that $140 million worth of long ETH positions were liquidated, setting the stage for Ethereum to lead the overall liquidation figures. While Bitcoin's liquidation totaled $132 million, it paled in comparison to Ethereum’s dominance in the market sell-off. This underlines the current volatility and high market risk associated with Ethereum's recent price action.
Liquidation Heatmap. Source: Coinglass
Market watchers are speculating that large whales and institutions played a role in exacerbating the selling pressure. The Ethereum Foundation, which holds a significant stake in ETH, also contributed to the market's downward momentum, with recent reports indicating a sale of 100 ETH for $336,000. This marks the latest in a series of sales as the foundation continues to manage its holdings.
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Future outlook
Ethereum's price is currently trading at $3,353, but there are no immediate signs of recovery, leaving experts cautious in their forecasts. Some analysts have set ambitious price targets for ETH, with predictions reaching $5,000 and even $10,000 for the year.
In the derivatives market, Ethereum's open interest (OI) in futures has dropped by 7%, while options OI has risen, indicating a shift in market sentiment as traders adjust their positions. With Ethereum’s market still in flux, the coming weeks will be crucial in determining whether the asset can regain its footing or face further downward pressure.
As a reminder, we reported that Bitcoin price drops below $100K, $400M liquidated as altcoins take a hit.
