Back to main

Ether Faces $212 Million Liquidation Threat as Prices Teeter Near Critical $3,100 Mark

The cryptocurrency sector is on edge, with projections indicating that a dip in Ether’s value below $3,100 could lead to the liquidation of leveraged long positions amounting to more than $212 million.

This prediction comes amidst a sharp decline in Ether‘s price, which fell 9.3% to $3,254 over a 24-hour period ending at 10:40 am UTC.

Over the week, Ether has seen a downturn of over 18%, and a further drop to $3,100 could erase $212 million in long leveraged investments, based on data from Coinglass.

Should Ether’s price drop below the crucial $3,000 mark, liquidations are expected to surge to $237 million.

The market’s recent volatility has led to significant liquidations amounting to $624.4 million in the last 24 hours alone.

This turbulence has predominantly affected long positions—investments made with the expectation of a price increase—eradicating $514 million in long positions and $110 million in short positions.

The OKX exchange experienced the highest liquidation volume at $90.8 million, with Binance and Bybit following at $79.9 million and $23.4 million respectively, according to Coinglass statistics.

A Bitfinex report, shared with Cointelegraph, notes Bitcoin’s recent sharp downturn since March 14, positing it as a potential test of institutional interest that could lead to a recalibration of prices across the cryptocurrency market: “We anticipate a period of market recalibration as investors seek equilibrium amidst unprecedented inflows into Spot Bitcoin ETFs.

READ MORE: Bitcoin Nears $60K Amid Weekend Sell-Off; Market Eyes ETF Resurgence and Futures Gap for Recovery

Conversely, the altcoin market’s resilience, evidenced by growing investment flows and record outflows of ETH, underscores a bullish narrative for Ethereum and Layer 1 blockchain projects.

As the market evolves, the performance of large-cap altcoins will be instrumental in determining its trajectory.”

Further, a record high in Ether net outflows from exchanges was observed on March 11, with 154,000 Ether withdrawn.

This reduction in exchange-available supply might push prices upward. Bitfinex suggests, “The recent netflow data indicates a potential short-term upward trajectory for Ether, however, we suspect this could be the traders moving their Ether off-exchanges to trade coins on an ERC-20 protocol or a Layer 2 like the Base mainnet.”

This movement indicates a strategic shift by traders, potentially aiming for gains through alternative trading platforms or technologies.

To submit a crypto press release (PR), send an email to [email protected].

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Read on Crypto Intelligence Investment Disclaimer