Key Points
- Ethereum’s price volatility led to market liquidations worth $215 million, with ETH contracts accounting for $50.61 million.
- Ethereum’s Realized Profit increased, indicating a possible price drop below $3,400.
High market volatility led to significant liquidations, with Ethereum contracts accounting for a substantial portion of this.
Market Liquidations and Ethereum
Liquidations occur when a trader’s margin balance is insufficient to keep a position open, leading to a forced closure to prevent further losses.
Ethereum’s price fluctuations contributed to the high number of liquidations.
The cryptocurrency’s price dropped to $3,368 on 14 June, later rising to $3,512 and finally settling above $3,500.
Both longs and shorts, traders betting on a price increase or decrease respectively, were affected by these price swings.
Despite this, traders seemed to anticipate a price drop, as indicated by the Put/Call ratio.
Ethereum’s Realized Profit and Market Predictions
Ethereum’s Realized Profit, the total of all moved coins whose last price was lower than its press time value, also increased.
This rise suggests that holders are booking profits, which could lead to a price fall.
However, if this metric stabilizes, selling pressure across the market may decrease.
For Ethereum, the Realized Profit seems to have settled, suggesting that the cryptocurrency might trade between $3,400 and $3,600 in the coming days.
Exchange inflows and outflows were also analyzed to predict Ethereum’s next move.
An increase in exchange inflows, the number of coins sent into exchanges, implies that holders plan to sell, which usually leads to a price decrease.
At press time, Ethereum’s exchange inflows were higher than its outflows, indicating more Ethereum was up for sale than being moved to cold wallets.
If this trend continues, Ethereum’s price might drop below $3,400 again. However, a decrease in selling pressure could prevent this decline, leading to Ethereum consolidating on the charts.
