Key Points
- Ethereum’s price drop on 9th April led to an increase in long liquidations.
- The altcoin’s price briefly fell to $3470 before closing at $3505.
Ethereum’s (ETH) price experienced a slight drop on 9th April, falling to $3470. This decrease in value led to an uptick in long liquidations.
Long Liquidations Spike
Long liquidations happen when a trader’s position is forcefully closed due to insufficient funds to maintain it. This typically occurs when the value of an asset suddenly drops, forcing traders who have open positions favoring a price rally to exit their positions.
On 9th April, Ethereum saw a spike in long liquidations due to its price drop during the intraday trading session. The altcoin briefly traded below $3500 before recovering to close the day at $3505.
Futures market participants who had bet on a price rally suffered losses when Ethereum’s price fell to a low of $3470. In contrast, short liquidations totaled $7 million.
ETH’s Market Performance
Despite the recent drop, Ethereum’s price rally over the past week reflects the general uptrend across the cryptocurrency market. The global cryptocurrency market capitalization increased by 4% in the last seven days.
A look at Ethereum’s performance on the 1-day chart shows a resurgence of bullish sentiments. For instance, the coin’s Elder-Ray Index has returned only positive values since 8 April. This index measures the relationship between the strength of buyers and sellers in the market. A positive value indicates that bullish momentum is dominant.
On 8 April, Ethereum’s MACD line crossed above the Signal line, indicating that the altcoin’s shorter-term moving average is gaining momentum relative to the longer-term moving average. This is typically interpreted as a sign to enter and exit short positions.
