Crypto Market Braces for Impact as Ether Price Slump Threatens Major Liquidations
Summary:
Ether's price decline threatens to initiate a chain reaction, liquidating over $212 million in long leveraged positions if it dips below $3,100. This follows a 9.3% drop within 24 hours to $3,254 and an over 18% weekly decline. Substantial price fluctuations have led to $624.4 million worth of liquidations in the last day. Cryptocurrency exchanges OKX, Binance, and Bybit experienced the highest liquidations. With Bitcoin's unexpected dip, analysts anticipate market recalibration could be on the horizon, with the performance of large-cap altcoins playing a pivotal role in shaping the market's future. Amidst the volatility, Ether net outflows have hit a record as traders potentially move their Ether off-exchanges.
If Ether (ETH) drops below $3,100, long leveraged positions worth over $212 million could be liquidated in the cryptocurrency market. As of 10.40 am UTC, a 24-hour decrease of 9.3% brought Ether down to $3,254, representing more than an18% slump on the weekly chart. Coinglass data indicates that if the price plummets to $3,100, more than $212 million worth of long leverage would be eradicated. If Ether plunges beyond the critical $3,000 point, potential liquidations could escalate to $237 million. The recent fluctuation of prices has already induced a total liquidation of $624.4 million within the last 24 hours, mainly from long positions, which sums up to eliminate $514 million of long and $110 million of short positions. OKX Exchange endured the most significant hit with liquidations of up to $90.8 million, while Binance and Bybit experienced liquidations of $79.9 million and $23.4 million respectively, as per Coinglass. One consequence of Bitcoin's abrupt drop since March 14 could be a testing of institutional appetite, ultimately leading to a recalibration of prices within the broader crypto market, says a report shared with Cointelegraph by a Bitfinex analyst. The endurance of the altcoin market, demonstrated by burgeoning investment flows and an all-time high in the outflow of Ether, point to a positive outlook for Ethereum and other Layer 1 blockchain projects. As the market transforms, the performance of major altcoins will greatly influence its trajectory. Bitfinex reveals that the Ether net outflows have reached a new peak as exchanges experienced an outflow of 154,000 Ether on March 11, which reduces the available supply on exchanges and could potentially drive prices upward. The recent net outflow data implies possible short-term increase for Ether, although this could be attributed to traders relocating their Ether off-exchanges to trade coins based on the ERC-20 protocol or a Layer 2 like the Base mainnet.
Published At
3/19/2024 1:30:17 PM
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