In the running week, a tremendous amount of liquidations has been witnessed for Ethereum (ETH). The liquidations are all from the short positions.
This means that the investors who had bought ETH for short positions sold them to generate gains. According to the statistics, half a billion dollars have been liquidated in the recent trading sessions.
Data from CryptoQuant
CryptoQuant, a major on-chain analytics platform recently shared a report about the ETH liquidations for short positions.
The platform has revealed that the liquidations have set a world record and the situation for ETH is hovering in the bearish zone. As of now, the sentiments of the investors are bearish.
The majority of the liquidations were carried out in US dollars. On October 25, the ETH liquidations for short positions hit an all-time high.
Two Days Saw $500 Million Liquidated on Shorts
According to the statistics, it is not just Bitcoin that is causing huge problems for the sellers. The Ether shorters are also looking at huge losses and it is confirmed by all the exchanges.
On October 25 and 26, the trading price of the ETH/USD pair witnessed significant gains. During the particular days, the trading price of ETH rose from a low of $1,337 to a high of $1,593.
However, the trading price of ETH was not able to sustain the selling pressure of the bears. Right after hitting a high trading price, the value of ETH started experiencing a retracement.
The information is also confirmed by TradingView and other on-chain analytical firms.
The data now shows that in a matter of two days, the short positions that were liquidated for ETH had amounted to $500 million.
The report shows that the investors liquidated a total of 189,638 ETH and 161,986 ETHW respectively. Ki Young Ju, the CEO at CryptoQuant also confirmed the same through his tweet.
He confirmed that all of the exchanges were seeing a mass amount of liquidations being processed through their platforms for ETH in exchange of the USD.
ETH and BTC are Facing a Difficult Situation
It has been almost an entire year since the trading prices of ETH and BTC had been facing downtrends. Finally, as strong rallies have started supporting both assets, short-term investors are taking full advantage of it.
Although the prices of these assets do experience plunges, the bears do not seem to be in control. In recent days, it is the short-term investors who have been controlling the trend.
As soon as ETH and BTC reach a certain level, the short-term investors sell the respective assets and then buy them again at lower prices.
For now, both assets have consolidated above the critical support levels, which suggests that the bears are not able to control the trend for some time.