Ethereum
Ethereum Struggles Around $3,000 as Short Positions Increase: What Now?
- ETH was trading at $3,000 at press time.
- Ethereum’s cumulative short liquidation amounted to over $800 million.
After experiencing a price drop on May 7, Ethereum [ETH] we saw more liquidations in long positions. As a result, more traders opted for short positions.
Due to this increased short selling activity, the price of Ethereum declined further, falling below the $3,000 price range during the May 8 trading session.
Ethereum Traders Bet on Price Drop
Analysis of AMBCrypto on Ethereum exchange liquidation card on Change machine indicated a predominance of short positions at the time of writing this article.
Cumulative short-term liquidation leverage over a 24-hour period amounted to over $800 million.
This suggests that traders are increasingly taking short positions, indicating that they expect the price of ETH to continue to decline in the near term.
Source: Coinglass
A closer look at the chart revealed that the cumulative leveraged position over the past seven days has exceeded $1.7 billion.
Given the dominant trend during the previous trading session, this current positioning of traders is not unexpected.
Ethereum Long Positions Feel the Heat
Ethereum Long positions have seen more liquidations than short positions over the past three days.
AMBCrypto’s review of Coinglass’ liquidation chart revealed that between May 6 and 7, long positions exceeded $78 million.
Conversely, short liquidations, during the same period, amounted to approximately $18.3 million.
Source: Coinglass
This trend persisted at press time, with long liquidations exceeding $7 million, while short liquidation volume stood at approximately $1.6 million.
Will ETH fall deeper?
AMBCrypto’s point of view Ethereum The daily price trend revealed a notable three-day decline.
Read Ethereum [ETH] Price prediction 2024-25
Trading at around $3,000 at the time of writing, down less than 1%, the price movement indicated some level of volatility, as described by the Bollinger Band.
This drop further entrenched ETH in a downtrend, with the Relative Strength Index (RSI) sitting at 40, signaling strong bearish sentiment.
Source: TradingView
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