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


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.

Source: Coinglass

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:

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.

Source: CoinCodex

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.

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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

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