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

Share This Post

The recent price action of Ethereum has not been so much of a breeze. The second-largest cryptocurrency by market cap experienced a surge that nearly reached its all-time high, only to be met with a sharp reversal, leaving long traders licking their wounds.

Bulls Take A Hit, But Sentiment Remains Positive

The past few days have seen a significant decline in Ethereum’s price, dropping from $3,880 to around $3,735. This has resulted in substantial liquidations for long traders, exceeding $55 million in the last three days compared to only $16 million for short positions.

Despite the dip, technical indicators paint a bullish picture. The price remains above the short moving average, and the Relative Strength Index (RSI) sits comfortably above 60, suggesting a strong underlying trend.

The funding rate, which reflects the cost of borrowing and lending cryptocurrency, provides further evidence of bullish sentiment. It has remained positive, currently at 0.014%, suggesting that buyers are still dominant and expect the price to rise further.

Open Interest Soars, Signaling Sustained Investor Interest

While the price has dipped, investor interest in Ethereum remains robust. Open Interest, which reflects the total amount of outstanding futures contracts, reached a peak of $17 billion on May 28th, the highest level in over a year. This indicates that despite the recent volatility, investors are still heavily engaged with Ethereum and believe in its long-term potential.


Ethereum Price Forecast

Meanwhile, Ethereum’s current price prediction of $3,940 by June 30th suggests a potential 2% increase. While the technical indicators remain neutral, the high Fear & Greed Index of 73 indicates a prevailing sense of greed among investors. This could fuel further price movement in the short term.

Looking at the recent performance, Ethereum has experienced a moderate amount of volatility with 57% green days over the past month. This suggests a potential for continued upward momentum, especially considering the significant price increase since the cycle low of $897. However, it’s important to remember that the market is dynamic, and corrections can occur even in bullish environments.

Related Reading: Political Memecoin Mania: Super Trump Token Explodes With 200% Surge

Overall, the technical analysis paints a mixed picture for Ethereum. While the neutral sentiment and recent price dip might raise some concerns, the high Fear & Greed Index and strong performance since the cycle low suggest potential for further growth.

Featured image from Pexels, chart from TradingView

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Why Crypto Market Is Going Up Today? Top Factors Driving Prices Higher

The post Why Crypto Market Is Going Up Today Top Factors Driving Prices Higher appeared first on Coinpedia Fintech News The total crypto market cap surged by over 12 percent in the past 24 hours to

XRP Price Set to Skyrocket? SEC’s Latest Move Explained!

The post XRP Price Set to Skyrocket SEC’s Latest Move Explained! appeared first on Coinpedia Fintech News After years of legal challenges under Biden’s administration, Ripple Labs can finally

Solana Forms Classic Cup-And-Handle Pattern – Analyst Predicts A Breakout To $3,800

Solana (SOL) is facing significant selling pressure and struggling to hold key support levels as the entire crypto market remains under stress Bulls have lost control, with SOL plunging over 37%

Crypto News: Goldman Sachs Acknowledges Crypto in Annual Letter for First Time

The post Crypto News: Goldman Sachs Acknowledges Crypto in Annual Letter for First Time appeared first on Coinpedia Fintech News Goldman Sachs, the world’s second-largest investment bank, has

David Sacks Sells $200M in Crypto Before Taking Office Amid Conflict-of-Interest

The post David Sacks Sells $200M in Crypto Before Taking Office Amid Conflict-of-Interest appeared first on Coinpedia Fintech News David Sacks, the newly appointed AI and cryptocurrency affairs

Bitcoin Demand ‘Seems Stuck’ – Expert Reveals It’s Too Early To Call It A Bear Market

Bitcoin (BTC) has dropped over 29% from its January all-time high of $109,000, reflecting the broader market correction that has affected both crypto and US stocks With fear and uncertainty gripping