Key Points
- Ethereum’s short liquidation value has surpassed $800 million due to increased shorting activity.
- Long positions have seen more liquidations than short positions in the last three days.
Increased Shorting Activity in Ethereum
Ethereum experienced a drop in price on May 7, leading to a spike in long position liquidations.
This led to an increase in traders choosing to short, causing Ethereum’s price to fall below the $3,000 mark on May 8.
Short Positions Dominate
An analysis of Ethereum’s exchange liquidation map on Coinglass revealed a predominance of short positions.
The cumulative short liquidation leverage for the 24-hour period exceeded $800 million, indicating a trend towards short positions.
This suggests traders expect Ethereum’s price to continue its downward trend in the near future.
The cumulative leveraged position over the past week has surpassed $1.7 billion.
Considering the previous trading session’s trend, this positioning by traders is unsurprising.
Over the past three days, Ethereum’s long positions have seen more liquidations than short positions.
Between May 6 and 7, long liquidations exceeded $78 million while short liquidations were approximately $18.3 million.
This trend continued, with long liquidations surpassing $7 million and short liquidation volume around $1.6 million.
Ethereum’s daily timeframe price trend showed a significant three-day decline.
Trading at around $2,999, with a decrease of less than 1%, the price movement indicated some level of volatility.
This decline has pushed Ethereum further into a bearish trend, with the Relative Strength Index (RSI) standing at 40, indicating a strong bearish sentiment.
