Coinglass, the cryptocurrency information platform, showed a liquidation of $213.32M crypto assets in the past 24 hours. Ethereum is the leading asset in this liquidation with over $128.69M, followed by Bitcoin with $32.48M assets liquidated. Statistical Data from Coinglass shows that over 60,682 traders were liquidated.
Liquidation In The Market
Liquidation occurs when a trader loses his margin, and the exchange sells off assets kept as collateral to cover up the lost margin. Speculations have it that investors’ predictions about the merge caused the liquidation.
A market intelligence platform, Santiment, spoke on the losses and gains ETH incurred during this merge. Traders bet on the merge not going smoothly; however, it reached the $1500 mark before bouncing slightly above the $1600 mark.
This caused traders who made short trades to get liquidated. The FUD in the market caused a lot of volatility and consolidation. This volatility caused the massive liquidation that took place.
A Comment on this explained that many traders bought a spot position and opened a short in the same amount without leverage. “This one is delta zero in a price movement,” he said. Not many have shown their reaction to this liquidation.
However, the condition of the market is in no way looking good. Santiment added that ETH had seen less traction before the merge, and with this merge, higher volatility would come in the nearest future.
Ethereum Market Not Looking Good
A significant merge happening should have propelled the price upward; however, that wasn’t the case. The market recorded losses due to liquidation and volatility.
Days before the merge, there was market consolidation as it wrestled between the $1600 to $1700 mark. However, after the merge, the price of ETH fell over 9.73% in 24 hours.
Eth is currently trading at $1455, down by 9.44% in 24 hours.
The price range in 24 hours went from $1453.04 to $1608. This range clearly shows that the price of ETH is tilting downward. The trading volume currently valued at $20,007,509,913 saw an 18.78% drop.
An Investor conducted a poll to determine how traders felt about the ETH market. If they thought it would remain within the $1500-$1800 mark or go above $2000 or below $1000.
The majority were bearish, and one stated this would be a “buy the rumor and sell the news” scenario, after which ETH would go down to $1000. Everyone followed en route, saying ETH would see the 600-900 mark at this point.
Still on Ethereum, the ETHPOW launched 24 hours after the merge was listed on Coinmarketcap a month ago. It recorded its all-time high at $141.36 after the launch. ETH POW is currently trading at $12.84, with a 63.66% loss over the last 24 hours.