Ethereum Bloodbath: Over $55 Million In Longs Liquidated As Price Plummets

Christian Encila

1 year ago

2 mins read

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Ethereum’s recent price movement has not been very straightforward. The second-largest cryptocurrency by market capitalisation saw a rally almost equal to its all-time high, only to be sharply reversed, leaving long traders nursing their losses.

Bulls Take A Hit, But Sentiment Remains Positive

Ethereum’s price has dropped significantly in the previous several days, going from $3,880 to roughly $3,735. For long traders, this has meant significant liquidations—more than $55 million in the past three days compared to just $16 million for short bets.

Technical indications show a positive picture even with the decline. The Relative Strength Index (RSI) sits comfortably over 60, implying a strong underlying trend; the price still exceeds the short moving average.

Further proof of positive attitude comes from the financing rate, which shows borrowing and lending bitcoin’s cost. It has stayed positive, at 0.014%, implying that buyers still rule and that they expect the price to grow still more.

Ether market cap currently at $448 billion. Chart: TradingView.com

Open Interest Soars, Signaling Sustained Investor Interest

Ethereum still attracts strong investor interest even if the price has dropped. Reflecting the whole outstanding future contract count, Open Interest peaked on May 28th at $17 billion, the highest level in more than a year. This shows that investors are still very involved with Ethereum and believe in its long-term possibilities even with the recent turbulence.

The price of Ethereum has been up in the last 24 hours. Source: Coingecko

Ethereum Price Forecast

Ethereum’s present price estimate of $3,940 by June 30th, meantime, points to a possible 2% increase. Although the technical indicators are still neutral, the high Fear & Greed Index of 73 shows investors’ general inclination of greed. In the near run, this can drive more short-term price fluctuation.

With 57% green days over the past month, Ethereum has shown a modest degree of volatility in the recent performance. Given the considerable price rise since the cycle low of $897, this points to a possible for ongoing momentum upward. It is crucial to keep in mind, nevertheless, that the market is dynamic and corrections can happen even in optimistic surroundings.

The technical study shows Ethereum a mixed picture overall. Although the neutral attitude and recent price drop cause some questions, the high Fear & Greed Index and good performance since the cycle low point point to possible future expansion.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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