Ethereum Bloodbath: Over $55 Million In Longs Liquidated As Price Plummets

The
recent
price
action
of
Ethereum
has
not
been
so
much
of
a
breeze.
The
second-largest
cryptocurrency
by
market
cap
experienced
a
surge
that
nearly
reached
its
all-time
high,
only
to
be
met
with
a
sharp
reversal,
leaving
long
traders
licking
their
wounds.

Related
Reading

Bulls
Take
A
Hit,
But
Sentiment
Remains
Positive

The
past
few
days
have
seen
a
significant
decline
in
Ethereum’s
price,
dropping
from
$3,880
to
around

$3,735.
This
has
resulted
in
substantial
liquidations
for
long
traders,
exceeding
$55
million
in
the
last
three
days
compared
to
only
$16
million
for
short
positions.

Despite
the
dip,
technical
indicators
paint
a
bullish
picture.
The
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
expect
the
price
to
rise
further.

Open
Interest
Soars,
Signaling
Sustained
Investor
Interest

While
the
price
has
dipped,
investor
interest
in
Ethereum
remains
robust.
Open
Interest,
which
reflects
the
total
amount
of
outstanding
futures
contracts,
reached
a
peak
of
$17
billion
on
May
28th,
the
highest
level
in
over
a
year.
This
indicates
that
despite
the
recent
volatility,
investors
are
still
heavily
engaged
with
Ethereum
and
believe
in
its
long-term
potential.

Ethereum
Price
Forecast

Meanwhile, Ethereum’s
current
price
prediction
of
$3,940
by
June
30th
suggests
a
potential
2%
increase.
While
the
technical
indicators
remain
neutral,
the
high
Fear
&
Greed
Index
of
73
indicates
a
prevailing
sense
of
greed
among
investors.
This
could
fuel
further
price
movement
in
the
short
term.

Looking
at
the
recent
performance,
Ethereum
has
experienced
a
moderate
amount
of
volatility
with
57%
green
days
over
the
past
month.
This
suggests
a
potential
for
continued
upward
momentum,
especially
considering
the
significant
price
increase
since
the
cycle
low
of
$897.
However,
it’s
important
to
remember
that
the
market
is
dynamic,
and
corrections
can
occur
even
in
bullish
environments.

Related
Reading

Overall,
the
technical
analysis
paints
a
mixed
picture
for
Ethereum.
While
the
neutral
sentiment
and
recent
price
dip
might
raise
some
concerns,
the
high
Fear
&
Greed
Index
and
strong
performance
since
the
cycle
low
suggest
potential
for
further
growth.

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