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

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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.

Source: Coinglass

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.

Ether market cap currently at $448 billion. Chart:

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.

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

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.

Source: CoinCodex

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.

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

Christian Encila

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 and Bitcoinist, 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 future intertwined with NewsBTC and Bitcoinist. He says he sees himself “growing old” alongside these companies, 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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