Ethereum’s $2000 Aspiration Faces a Tug of War with Liquidations
- Ethereum’s long position liquidations reached a record-high $58 million.
- Despite volatility, a minor price uptrend shows potential for Ethereum recovery.
Ethereum’s long positions have been on a tumultuous rollercoaster ride, with record-high liquidations topping $58 million in May. The digital asset, currently trending bearish around the $1,820 price range, has been entrapped within the $1,800 price range for a substantial period. Despite witnessing a minor surge, the potential for growth remains overshadowed by the rampant liquidations.
#Ethereum $ETH Mean Liquidated Volume in Futures Contracts Long Positions just reached a 1-month high of $211,801.50 on #Okex
— glassnode alerts (@glassnodealerts) May 27, 2023
Previous 1-month high of $191,205 was observed on 07 May 2023
View metric:https://t.co/8RQAZR8er0 pic.twitter.com/Ed3dfnYqEZ
An analysis by Glassnode Alerts revealed that the Mean Liquidated Volume in Ethereum Futures Contracts’ Long Positions spiked on May 27. The data highlighted that the average amount of Ethereum Futures Long Liquidations surpassed 32,000 ETH, equivalent to over $58 million at the current valuation. This staggering figure makes it one of the highest ETH Futures Liquidations in May, reflecting the high-risk profile of futures contracts.
Ethereum Futures’ High-Stakes Game
Futures contracts pose a high-risk scenario due to their inherent design. When traders invest in long positions for Ethereum futures contracts, they speculate on the price of ETH to increase. However, the risk surfaces when ETH falls below a specific threshold and traders’ accounts fall short of covering the losses, triggering liquidations.
On the same note, a 24-hour examination of the Ethereum liquidation map, as per CoinGlass, revealed that ETH saw liquidations amounting to $8.42 million. The details of these liquidations break down to $2.48 million for long positions and $5.94 million for short positions. This indicates a higher risk faced by long positions, which have seen an increase in liquidations throughout May.
Unveiling Ethereum’s 24-hour Timeframe Roller Coaster
The market scenario presents a daunting landscape for Ethereum traders, with the hovering uncertainty of liquidations. Nevertheless, the digital asset has shown a faint glimmer of hope. Ethereum’s daily timeframe chart exhibited a 1.26% value increase at the end of trading on May 26, and the asset has shown a minor upward trend of less than 1%.
In conclusion, while Ethereum’s current scenario seems daunting, with $2000 seeming a pipe dream, it is crucial to remember the volatile nature of the crypto market. This volatility may offer Ethereum the chance to rebound and reach new highs in the days to come.
Read more: https://thenewscrypto.com/ethereums-2000-aspiration-faces-a-tug-of-war-with-liquidations/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
