Cryptocurrency market turmoil sees ETH short sellers reap massive gains, liquidations skyrocketing by a staggering 370% relative to Bitcoin
In the dynamic world of cryptocurrency, Ethereum (ETH) has been making headlines recently due to its remarkable performance in short liquidations, outpacing Bitcoin (BTC) by a significant margin.
On a specific date, Ethereum reached a local high, although the exact figure is not provided. This surge was followed by a series of events that led to a wave of forced buybacks from overleveraged short positions, causing a short squeeze. In the last 24 hours, Ethereum experienced significant short liquidations amounting to $111.27 million, outpacing Bitcoin's liquidations by 370%.
The cause of this disproportionate short liquidation rate can be attributed to Ethereum's more volatile price action combined with large, concentrated leveraged short positions near critical resistance levels. According to Coinglass, breaking the $4,400 mark could liquidate nearly $1.5 billion in shorts on centralized exchanges, indicating significant leverage and crowding on the short side.
Ethereum's price movements have been sharper and more abrupt, such as the rapid rise from around $3,900 to above $4,200 in under 48 hours, causing massive short squeeze liquidations estimated at over $200 million in just one day. This volatility, coupled with the concentration of positions and leverage, has made Ethereum's short liquidations more pronounced compared to Bitcoin.
While Bitcoin also experiences liquidations and volatility, its price action is generally less prone to extreme short squeeze cascades, partly due to its more mature market structure and different leverage dynamics.
In addition to volatility, institutional and corporate support for Ethereum has also played a crucial role in bolstering its price, making sharp upswings more likely and causing bearish positions to face higher liquidation risk. Large corporate holdings and ETF inflows have contributed to this trend.
The SEC has recently given Ripple private fundraising the greenlight, which could be a positive sign for the crypto market as a whole. Meanwhile, Wall Street is considered 'too greedy' to pass on an XRP ETF by a pro-Ripple lawyer.
As of the time of writing, Ethereum was up 6.94% in the last 24 hours to $3818. The SOL/ETH hot capital ratio has reached a year-to-date low of 0.045, indicating a shift in favour of Ethereum. Binance Lost 10% of Ethereum (ETH) Supply, which could be a major bullish signal for Ethereum.
Solana (SOL) also saw a local high on a specific date, but the details are not provided. However, the cooldown for Solana is sharper than Ethereum, suggesting a more pronounced decrease in activity for Solana. Both SOL and ETH are presently slowing, but the context is not clear about what exactly is slowing.
In the early Thursday session, Ethereum rose sharply to a high of $3843, building on an earlier rebound from a low of $3563 in the Wednesday session. The surge in Ethereum prices led to ETH experiencing record short-term inflows on July 29.
Fundstrat's Tom Lee believes Ethereum is 'superior', and the crypto community continues to follow the developments closely, using hashtags like #Ethereum, #Bitcoin, and #Crypto Liquidations to track the ongoing topic. The SEC's greenlight for Ripple fundraising and the significant event of Binance losing 10% of Ethereum's supply are also subjects of ongoing interest and discussion.
References: [1] Coinglass data [2] Coinglass post on X [3] Coinglass data [4] Coinglass post on X [5] Coinglass data
- Ethereum (ETH) has surpassed Bitcoin (BTC) in terms of short liquidations, with a record $111.27 million in the last 24 hours, as reported by Coinglass data.
- The surge in Ethereum's price might be attributed to institutional and corporate support, causing bearish positions to face higher liquidation risk, as suggested by the recent rebound from $3563 to $3843.
- The sharp rise of Ethereum's price and the ongoing discussions about Ripple's fundraising and Binance losing 10% of Ethereum's supply are popular topics in the crypto news, tracked by hashtags like #Ethereum, #Bitcoin, and #Crypto Liquidations.
- The movement in the finance and trading world is not restricted to Ethereum (ETH), as Solana (SOL) also saw a local high, but its cooldown is sharper compared to Ethereum, as per the Coinglass data.
