Ethereum has broken $1,900 and is now on a winning streak. It follows a weekend marked mostly by low momentum that would soon turn around. Due to recovery, the market saw a number of short liquidations. The liquidations of Ethereum reached a three-year peak when thousands were removed from short positions on Bitfinex’s cryptocurrency exchange.
Bitfinex Short Liquidations Grow
Bitfinex’s crypto exchange is highly popular among both professionals and amateur traders. It is because liquidation volumes can often be announced on the platform that liquidation volume are frequently declared. However, Monday’s liquidations would pose a new record for the market given that Ethereum liquidations alone had surged past $600 million.
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The digital asset was able to be liquidated in the most significant daily transactions for three years. Over $690,000,000 in Ethereum shorts were liquidated through various exchanges. The majority of liquidations over the four hour period were made up by shorts, which accounted for 99.5%. But, most of it had been from Bitfinex cryptocurrency exchange. This was almost $670 million in liquidation on the exchange, since ETH had surpassed $1,900.
While other cryptocurrencies, such as Bitcoin, suffered a similar impact in that time frame but not to the extent Ethereum traders were liquidated. This shows that the sentiment towards digital assets is changing.
Ethereum Stands Its Ground
Along with Bitcoin, Ethereum is showing signs of recovery. This has helped the digital asset surpass its 20-day moving mean. ETH is still on track to surpass $1,900, a significant milestone after struggling with $1,000.00 in recent weeks. This is also the last green closing for ETH in the recent weeks, as the cryptocurrency had been closely following the Bitcoin price.
ETH price breaks above $1,900 | Source: ETHUSD on TradingView.com
The liquidity in Ethereum has slowed, however. The short four hour period during which Bitfinex’s liquidations caused chaos in the crypto market was quickly over. This has opened the door to more affordable liquidations volumes. For the 24 hour period ending today, liquidations on the crypto market have fallen to less than $130million.
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Since then, Ethereum is now in second place behind Bitcoin for liquidations. At the time this article was written, traders lost $44.4 million while ETH traders suffered losses of $32 million. Bitfinex is still the biggest single liquidation, with $2.06 Million from one trade. It has liquidated 48,219 traders.
CNBC image featured, chart by TradingView.com
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