Ethereum Single-Day Liquidations Reach Three-Year High As Price Breaks $1,900
07 June 2022 - 3:00AM
NEWSBTC
Ethereum is back on another winning streak as it breaks above
$1,900. This follows a weekend that was mostly characterized by low
momentum but would eventually turn for the better. In the wake of
this, there have been a lot of short liquidations in the market due
to the recovery. However, the liquidations in Ethereum hit a new
three-year high when thousands of short positions were liquidated
on the Bitfinex cryptocurrency exchange. Bitfinex Short
Liquidations Grow The Bitfinex crypto exchange is one of the
largest exchanges in the world and is highly favored by both
amateur and professional traders. This is why liquidation volumes
are oftentimes pronounced on the platform. However, Monday’s
liquidations would pose a new record for the market given that
Ethereum liquidations alone had surged past $600 million. Related
Reading | Bitcoin Dominates Derivatives Market To End May On A
High Note This pushed the digital asset into the largest daily
liquidations in three years. In total, there were more than $690
million in Ethereum shorts liquidated across various exchanges.
Shorts made up 99.5% of these liquidations that were recorded over
a four-hour period. However, the majority had come from the
Bitfinex crypto exchange. It came out to almost $670 million
liquidated on the exchange as ETH had barreled past the $1,900
level. Other cryptocurrencies such as Bitcoin had taken a hit in
the same timeframe but none close to the degree to which Ethereum
traders had been liquidated. It shows that sentiment is turning
towards the positive it comes to the long-term for the digital
asset. Ethereum Standing Its Ground Ethereum has been on a recovery
trend alongside Bitcoin. This has shot the digital asset above its
20-day moving average. Making its way above $1,900 remains an
important point for ETH which has recently been struggling with the
$1,700 level. It also marks the only green close in recent weeks
for the digital asset as it had been closely trailing the price of
Bitcoin. ETH price breaks above $1,900 | Source: ETHUSD on
TradingView.com Liquidations in Ethereum have eased up, however.
The four-hour period where the Bitfinex short liquidations had
rocked the market had quickly passed, paving way for more
reasonable liquidation volumes. Presently, liquidations across the
crypto market sit at less than $130 million for the last 24 hours.
Related Reading | Institutional Investors Turn To Competitors
As Ethereum Tumbles Ethereum has since gone back to trailing behind
Bitcoin when it comes to liquidations. The pioneer digital asset
has seen traders lose $44.4 million in the past one day at the time
of this writing while ETH traders have recorded $32 million in
losses. A total of 48,219 traders have been liquidated and Bitfinex
still maintains the largest single liquidation with a total of
$2.06 million from a single trade. Featured image from CNBC, chart
from TradingView.com Follow Best Owie on Twitter for market
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