Ethereum (ETH) Traders Face Significant Liquidation Surge Amid Market Volatility

• The Ethereum price decline has led to over $57 million in long liquidation volume in the last three days.
• ETH has declined by over 3% in the last three days.
• Ethereum long traders have experienced increased liquidations over the past few days.

The recent Ethereum price decline has resulted in significant long liquidations, impacting traders and market sentiment.

Ethereum Price Decline and Long Liquidations

The Ethereum price decline has led to consecutive long liquidations. Over the past three days, ETH has seen a decline of over 3%, resulting in a long liquidation volume of more than $57 million. This trend has significantly impacted long traders, who have faced substantial losses.

Market Analysis and Trends

Analysis of Ethereum on a daily time frame indicates that it has experienced consecutive downtrends over the past three days. These recent downtrends followed consecutive uptrends, which had driven its price to approximately $3,890 on 27th May. As of this writing, ETH was trading at around $3,740, reflecting a decline of less than 1%. Despite the recent decline, the overall trend for ETH remained bullish. The chart indicated that, as of now, it was trading above its short Moving Average (yellow line), which is a positive signal. Additionally, analysis of its Relative Strength Index (RSI) shows a reading above 60, reinforcing the presence of a strong bullish trend.

Impact on Long Traders

According to the analysis of liquidation data on Coinglass, Ethereum long traders have experienced increased liquidations over the past few days. On 28th May, when the price decline began, the long liquidation volume was approximately $31.6 million. The following day, it was around $17.5 million, and as of the current writing, it is over $8 million. This brings the total long liquidation volume over the last three days to more than $57 million, compared to just over $18 million in short liquidation volume.

Open Interest and Market Sentiment

Despite the decline in price, interest in Ethereum remains strong. Analysis of the Open Interest chart on Coinglass reveals that Open Interest peaked at $17 billion on 28th May, marking the highest level in over a year. As of this writing, the Open Interest was around $16.7 billion, which is still one of the highest points in over a year. This indicates sustained investor engagement and interest in Ethereum. Additionally, an analysis of the funding rate indicated that sentiment around ETH remained positive. The chart showed that the funding rate has stayed above zero, currently at 0.013%. This suggests that buyers continue to dominate, indicating a strong belief in a potential further rise in ETH’s price.

Conclusion

In conclusion, the recent Ethereum price decline has led to significant long liquidations, impacting traders and market sentiment. Despite this, the overall trend for ETH remains bullish, with strong investor engagement and positive market sentiment. The high Open Interest and positive funding rate indicate that the market still believes in the potential for further price increases. Traders should remain cautious and stay informed about market trends to navigate these volatile conditions effectively.