ethereum (ETH) price suddenly plummeted as more investors liquidated their positions. The coin has pulled back to $1,976, its lowest level since Monday. It has fallen more than 8% from its high this week.
ETH Bullish Liquidation Rise
Ethereum joined other cryptocurrencies in a major sale on Monday. Bitcoin has broken below $30,000 for the second time this week. Around the same time, popular coins such as Arbitrum, Space ID, Kaspa and Verasity were also lowered.
It’s not clear why Ethereum and other cryptocurrencies crashed on Wednesday. A possible reason is that the number of bullish liquidations has jumped to its highest level in months. According to CoinGlass, the bullish liquidation amount he surpassed $41.1 million. In contrast, short sale liquidations exceeded $1.2 million.
These numbers were significantly higher than Wednesday, when the bullish liquidation was just $9.6 million. Shorts’ liquidation was his $16 million.
Most of the time, cryptocurrencies surge when short sellers start liquidating their coins and vice versa. For example, the price of Ethereum surged on his April 14th, with short liquidations jumping above his $62.8 million.
Ethereum’s decline coincided with the outflow of funds from multiple centralized exchanges. Over $18 million on Binance outflow Within the last 24 hours. Similarly, Bitfinex, Huobi and Bybit lost over $20 million each.
Meanwhile, Ethereum’s price also responded to Gary Gensler’s latest question on Tuesday. In his testimony before Congress, he repeatedly refused to answer whether he believed Ethereum was the current financial security.
In a previous interview, Gensler said he believes Ethereum and other proof-of-stake coins are securities. His main concern is the opacity of staking, which he believes should be regulated to protect his customers. On Monday, the SEC identified that he believes five coins, including Algorand, are securities.
ethereum price prediction
The daily chart shows that ETH price has been bullish in recent months. It surged to a multi-month high of $2,120. If you look closely, you can see a dark cloud pattern, which explains why it plummeted. It also fell below the initial resistance of the Woodie pivot point.
Ethereum is above the 50-day and 25-day moving averages. Therefore, a bullish breakout for the coin is likely in the coming weeks as buyers target the second resistance at $2,200.
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binance
Binance is one of the largest cryptocurrency exchanges in the world. Suitable for more experienced investors, with over 600 cryptocurrencies to choose from. Binance is also known for its low transaction fees and multiple trading options that users can benefit from. Peer-to-peer trading, margin trading, spot trading.
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OKX
OKX is a top cryptocurrency exchange offering over 140 cryptocurrencies for investment. OKX takes customer security very seriously, keeps almost all customer funds in cold storage, and the exchange has not yet been hacked. In addition to this, the exchange offers very low fees and customers can even use crypto as collateral for loans on the platform.
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