Ethereum
Over $55 Million in Long Positions Liquidated as Prices Fall — TradingView News
Ethereum’s recent price action has not been so simple. The second-largest cryptocurrency by market capitalization saw a rally that nearly reached its all-time high, only to run into a sharp reversal, leaving long traders licking their wounds.
Bulls take a hit, but sentiment remains positive
In recent days, the price of Ethereum has dropped significantly from $3,880 to around $3,735. This led to substantial liquidations for long traders, exceeding $55 million over the past three days, compared to just $16 million for short positions.
Despite the decline, technical indicators paint a bullish picture. Price remains above the short moving average and the Relative Strength Index (RSI) sits comfortably above 60, suggesting a strong underlying trend.
The funding rate, which reflects the cost of borrowing and lending cryptocurrency, provides further evidence of bullish sentiment. It has remained positive, currently at 0.014%, suggesting that buyers are still dominant and expecting the price to rise further.
Open Interest Soars, Signaling Sustained Investor Interest
Although the price has declined, investor interest in Ethereum remains robust. Open interest, which reflects the total amount of futures contracts outstanding, reached a high of $17 billion on May 28, the highest level in more than a year. This indicates that despite the recent volatility, investors are still heavily engaged in Ethereum and believe in its long-term potential.
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Ethereum Price Prediction
Meanwhile, Ethereum’s current price prediction of $3,940 by June 30 suggests a potential 2% increase. Even though technical indicators remain neutral, the high Fear and Greed Index of 73 indicates a prevailing sentiment of greed among investors. This could fuel further price fluctuations in the short term.
Looking at recent performance, Ethereum has seen moderate volatility with 57% green days over the past month. This suggests potential for continued bullish momentum, especially given the significant price increase since the cycle low of $897. However, it is important to remember that the market is dynamic and corrections can occur even in a bullish environment.
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Overall, technical analysis paints a mixed picture for Ethereum. While neutral sentiment and recent price declines may raise some concerns, the high Fear and Greed Index and strong performance since the cycle bottom suggest further growth potential.
Featured image from Pexels, chart from TradingView