Ethereum’s double-digit rally means this for traders, liq. levels

• Ethereum’s rise leads to a high liquidation volume.
• ETH continues to increase towards $2,800.

Over the past four days, Ethereum [ETH] has experienced substantial double-digit gains, leading to a significant impact on the volume of liquidations.

Ethereum shows strong trends

The Ethereum daily timeframe analysis showed a significant surge, marking its second major upward movement of the year on 12th February. This resulted in a more than 6% increase, propelling the ETH price to $2,661.

Despite a minor dip of less than 1% the following day, Ethereum witnessed its third-highest surge of the year on 14th February, surpassing a 5% increase and reaching over $2,776. At the time of this writing, it was trading at around $2,796, showing an almost 1% increase.

Source: Trading View

Also, the short moving average (yellow line) was acting as a support level at around $2,400. The Relative Strength Index (RSI) showed a robust bullish trend, with the RSI line positioned above 75, signifying that ETH has entered the overbought zone.

The strength of the ongoing trend is further confirmed by the Moving Average Convergence Divergence (MACD). At the time of this writing, the MACD lines were above zero, affirming the bullish trend identified by the RSI.

Ethereum uptrends liquidate positions

An examination of the liquidation chart on Coinglass following Ethereum’s over 6% surge in price on 12th February revealed a substantial liquidation of short positions. The chart showed a total of $26.5 million in short position liquidation and $11.8 million in long position liquidation.

However, the minor price decline on the subsequent day led to a more significant liquidation volume, particularly for long positions. The chart showed long position liquidation of over $26 million.

Source: Coinglass

On 14th February, there was a notable increase in short position liquidation volume over the past four days. The chart displayed short position liquidation of over $29 million, with around $4.4 million in short position liquidation volume.

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ETH traders show slight aggression

Analysis of the Coinglass funding rate in recent days showed an increased dominance of buyers, with the rate consistently remaining positive.

The chart displayed a rise in the funding rate to around 0.02% during the price surge on 13th February. However, at the time of this writing, there has been a minor decrease, with the funding rate now around 0.01%.