Ethereum has been in recovery mode since the developers announced a possible date for the merger. As this date is close, it has generated a lot of positivity among the community members who are looking forward to the transition of the leading proof-of-stake smart contract platform. This recovery has since led to a liquidation that has in no way slowed down, as nearly 90,000 traders watched their trades monetize.
Escalation of Ethereum Liquidations
The recent recovery trend has seen the price of Ethereum rise above $1,400 towards a new one-month high. In its wake, it left a trail of blood mostly made up of short-traders’ deals. These traders have been betting on the ability of digital assets to recover and are suffering now that it has exceeded everyone’s expectations.
In the last 24 hours, Ethereum recorded the largest liquidation of any cryptocurrency. This is because asset recovery was among the most prominent in this time period. info from Coinglass It shows that ETH traders witnessed liquidations of more than $230 million, most of which were short traders.
Liqudations ramp up | Source: Coinglass
The entire crypto market is now approaching $400 million in liquidation on the last day at the time of writing. A total of 86,525 traders were liquidated with the largest single liquidation taking place via the ETH-PERP pair on the FTX cryptocurrency exchange.
ETH does not stop
Ethereum price is preparing to test a very important price level at the time of writing. The cryptocurrency has now consolidated above its 20-day moving average and the next stop is $1,500, despite the single resistance building up at that level.
ETH price recovers above $1,400 | Source: ETHUSD on TradingView.com
The $1500 test is important to Ethereum for two reasons. Not only is this key resistance in its $1,700 campaign, but it is also a test of the digital asset’s ability to break through the 50-day hurdle. Staying above this point is critical for ETH if it is to continue its bullish rally.
Related reading | Short Liquidations Rise as Bitcoin Recovers Over $20,000
Ethereum’s recovery is also helping to turn the selling sentiment, albeit in the short term. In the long term, the digital asset will have to hold $1,500 and turn this point of resistance into a support level. Otherwise, its hold on $1,400 is still shaky.
Featured image from Analytics Insight, chart from TradingView.com
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