Since developers revealed a date for Merge, Ethereum has been going through a recovery phase. Since this date is close, it has sparked a lot of positivity among community members who looking forward to the leading smart contracts platform’s move to proof of stake. Since then, almost 90,000. traders have seen their positions liquidated.
Ethereum liquidations go up
Ethereum has been on a recovery path, with its price reaching $1,400. This is a one-month high. The trail left by the crash has been dominated by positions taken short-term traders. These traders had been betting against the digital asset’s ability to recover and are suffering now that it has exceeded everyone’s expectations.
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Ethereum saw the most liquidations in the past 24 hours. This is because the asset’s recovery has been one of the most prominent in this time period. Coinglass data shows that ETH traders saw more than $230,000,000 in liquidations. The majority were short traders.
Increased liquidations| Source: Coinglass
At the time this article was written, nearly $400 million has been liquidated in crypto markets in total. A total of 86.525 traders were liquidated. The largest liquidation occurred across the ETHPERP exchange pair.
The ETH is not stopping
Ethereum’s price is gearing up to test an incredibly important price level at the time of this writing. The price of Ethereum has now risen above its 20-day moving median. It will then reach $1,500. Despite significant resistance at that level, it is still in a strong position.
Price of Ethereum rises to $1,400| Source: ETHUSD on TradingView.com
Ethereum considers $1,500 important for two reasons. Not only is this the major resistance in its campaign to $1,700, it is also a test of the digital asset’s ability to break through the 50-day hurdle. If ETH wants to maintain its bull rally, it must stay above this level.
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Ethereum’s recovery is also helping to turn the sell sentiment, albeit in the short-term. In the long term, Ethereum would need to maintain $1,500 as resistance and then turn that support level into a support. Its hold on $1,400 is still uncertain.
Featured Image from Analytics Insight. Chart from TradingView.com
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