In a surprising shift, Ethereum (ETH), the leading altcoin in the market, has seen more liquidations in the past 24 hours than Bitcoin (BTC), signaling potential concerns about a downturn for the cryptocurrency. Data from CoinGlass shows Ethereum liquidations reached $105 million, surpassing Bitcoin’s $81.4 million, marking an unusual trend and the first such occurrence this month.
Of the $105 million in Ethereum liquidations, long position traders bore the brunt, suffering $56.38 million in losses, while short traders accounted for $48.65 million. In contrast, Bitcoin’s liquidation breakdown revealed that long traders lost $21.78 million, with short traders at $60.06 million. This significant shift towards short traders reflects growing anticipation of potential price volatility in the Ethereum market.
Given this imbalance, Ethereum’s growth prospects appear uncertain unless Bitcoin demonstrates strong upward momentum. Bitcoin’s price has slightly declined by 0.04%, currently trading at $104,423. However, BTC has seen a 10.7% increase over the past week, suggesting resilience in the broader market.
Despite these liquidations, Ethereum has shown impressive price performance recently. Over the past 24 hours, ETH gained 1.8%, trading at $2,564, and has risen 41.8% on the weekly chart and 60.9% on the monthly. However, Ethereum’s daily trading volume has dropped by 17.5% to $26.9 billion, indicating reduced market activity.
Some analysts remain optimistic about Ethereum’s potential, with expectations that ETH could reach $3,000. This optimism is driven by factors like whale accumulation, increased staking activity, and positive technical indicators. Additionally, the launch of Ethereum’s Pectra upgrade on the mainnet is seen as a significant catalyst, with Circle CEO Jeremy Allaire highlighting it as a pivotal improvement for on-chain usability, further boosting ETH’s recent price surge.
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