Connect with us
Active Currencies 14381
Market Cap $2,746,807,973,515.90
Bitcoin Share 50.35%
24h Market Cap Change $0.12

Ethereum: What $59 million ‘weekly high’ meant for ETH’s long traders

2min Read

On 9 April, long liquidations totalled $59 million, while short liquidations were less than $7 million on the charts.

Ethereum

Share this article

  • ETH’s price fell briefly, with the altcoin valued at $3470 on 9 April
  • Decline in price fueled an uptick in long liquidations

Ethereum’s [ETH] long liquidations closed the trading session on 9 April at a weekly high of $59 million, according to Coinglass data. This occurred despite the recent volatility in the altcoin’s price. In fact, according to CoinMarketCap, ETH was trading at just under $3550 at press time. 

Ethereum Liquidations

Source: Coinglass

Liquidations happen in an asset’s derivatives market when a trader’s position is forcefully closed due to insufficient funds to maintain it. Long liquidations occur when the value of an asset suddenly drops, and traders who have open positions in favor of a price rally are forced to exit their positions. 

In ETH’s case, it recorded a spike in long liquidations on 9 April due to the fall in its price during the intraday trading session. For its part, the altcoin briefly exchanged hands below $3500, before regaining to close the day at $3505. 

Soon after, Futures market participants who had placed bets in favor of a price rally were plunged into losses when ETH’s price fell to a low of $3470. On the other hand, short liquidations totalled $7 million, AMBCrypto found.

Bulls’ attempt to displace the bears

While it fell a little over the last 24 hours, ETH’s price rally over the past week mirrors the general uptrend across the cryptocurrency market over that period. In fact, the global cryptocurrency market capitalization has risen by 4% in the last seven days alone. 

An assessment of ETH’s performance on the 1-day chart underlined a re-emergence of bullish sentiments. 


Read Ethereum (ETH) Price Prediction 2024-25


For example, readings from the coin’s Elder-Ray Index revealed that the indicator has returned only positive values since 8 April. This indicator measures the relationship between the strength of buyers and sellers in the market. When its value is positive, it means that bullish momentum is dominant in the market. 

Furthermore, on 8 April, ETH’s MACD line (blue) crossed above the Signal line (orange) to be positioned above zero, at press time. 

ETH 1D TradingView

Source: ETH/USDT on TradingView

This type of intersection is considered a bullish signal because it indicates that the altcoin’s shorter-term moving average is gaining momentum. This, relative to the longer-term moving average. Traders interpret it as a sign to enter and exit short positions.

Share

Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.