In the past 24 hours, $540 million worth of Ethereum (ETH) has been liquidated as “shorts” were punished. This is the most liquidation seen in ETH in a single day, second only to the $900 million liquidated during the peak of the last selloff cycle.
The past 30 days have seen a total of $540 million worth of Ethereum (ETH) liquidated as “shorts” punished, as the price of ETH continued its downward spiral from the all time high of $1,426.99 on January 13, 2018. From that point, the price of Ethereum has decreased by over 60% to its current level of $326.92. The largest liquidation occurred on March 9, 2018 at 12:00:00 UTC, when 6,070 ETH were sold for $3,426,500.00. Post Intro: $540 million worth of Ethereum (ETH) liquidated as ‘shorts’ punished. (Cryptocurrency) blog post titled “$540
Ethereum (ETH) positions worth more than $542 million were liquidated last night as the asset reached all-time highs, according to data from market tool Bybt.
A total of 139,079 traders were liquidated, with the largest liquidation order being a $74.5 million ETH transaction on the cryptocurrency exchange Huobi.
At the heart of the Ethereum rampage
Liquidation, for the uninitiated, occurs when leveraged positions are automatically closed by exchanges/brokers as a safety mechanism.
Futures and margin traders, who borrow capital from the exchanges (usually in varying amounts) to make large bets, post a small amount of collateral before making a trade. If the market moves against it, the stock strengthens and the position is considered liquidated.
Yesterday, ETH traders felt the weight of these liquidations. According to Bybt, more than $542 million (159,000 ETH) has been liquidated, with traders betting on even higher prices. Of this amount, $275 million is attributable to traders who bet on the asset in the short term (i.e., bet on lower prices) and the remainder to traders who bet on the asset in the long term (bet on higher prices).
How were the long and short positions liquidated, you may ask? This is most likely due to the fact that the traders were using high leverage with a very tight liquidation price. As the notoriously volatile cryptocurrency market fluctuated, long and short positions were wiped out.
And this is what the area looked like. As seen in the chart below, ETH peaked at $3,440 and then fell by $350 in a few hours in the US, bottoming at $3,100 on some exchanges. In Asian hours, it reached $3,370 again.
ETH/USD via TradingView.
Yesterday, its value exceeded $3,300 and set a new all-time record, while becoming more expensive than U.S. financial institution Bank of America. Ethereum creator and co-founder Vitalik Buterin became one of the world’s youngest billionaires yesterday as a result.
How it all started How it all works pic.twitter.com/KLf18O6jtx
– wolfofethereum.eth (@LUKACACIC) May 3, 2021
Meanwhile, traders in other cryptocurrencies have also suffered significant capital losses. Bitcoin, the world’s largest crypto asset by market capitalization, liquidated $449 million, followed by XRP traders ($136 million), Dogecoin traders ($85 million) and Ethereum Classic traders ($22 million).
In total, more than $1.45 billion was liquidated. But for some, it was just another day in cryptocurrency land.
Gaining an advantage in the crypto asset market
As a paying member of Edge, you have access to a deeper understanding of cryptocurrencies and context in each article.
Join now for $19/month View all benefits
Do you like what you see? Sign up for updates.
This source has been very much helpful in doing our research. Read more about ethereum price prediction 2021 and let us know what you think.
why ethereum is going down todayethereum price prediction 2025why did ethereum drop todayethereum price prediction 2021ethereum price drop todaywhy is ether price dropping,People also search for,Privacy settings,How Search works,why ethereum is going down today,ethereum price prediction 2025,why did ethereum drop today,ethereum price prediction 2021,ethereum price drop today,why is ether price dropping,ethereum news,why did eth drop today