Ethereum's ongoing surge leads to significant liquidation volume, propelling ETH towards $2,800
In the last four days, Ethereum (ETH) has seen impressive gains, resulting in a notable impact on liquidation volume. The daily timeframe analysis for Ethereum indicates a striking surge, marking its second major upward movement of the year on February 12th. This surge led to a more than 6% increase, pushing the price of ETH to $2,661. Despite a slight dip of less than 1% the following day, Ethereum witnessed its third-highest surge of the year on February 14th, surpassing a 5% increase and reaching over $2,776. At the time of writing, it was trading at around $2,796, reflecting an almost 1% increase.
It is worth noting that the short moving average (yellow line) has been serving as a support level at approximately $2,400. The Relative Strength Index (RSI) indicates a robust bullish trend, with the RSI line positioned above 75, suggesting that ETH has entered the overbought zone. This bullish trend is further confirmed by the Moving Average Convergence Divergence (MACD) indicator, with the MACD lines positioned above zero, providing further affirmation of the bullish momentum identified by the RSI.
The surge in Ethereum's price has had a significant impact on liquidation positions. Analysis of the liquidation chart on Coinglass following Ethereum's over 6% surge on February 12th revealed a significant liquidation of short positions, totaling $26.5 million, as well as $11.8 million in long position liquidation. However, the subsequent minor price decline led to a higher liquidation volume, particularly for long positions. The liquidation chart indicated long position liquidation of over $26 million.
On February 14th, there was a notable increase in short position liquidation volume over the past four days, with over $29 million in liquidations, and approximately $4.4 million in short position liquidation volume.
Traders in the Ethereum market are exhibiting a slight sense of aggression. An analysis of the Coinglass funding rate in recent days demonstrated an increased dominance of buyers, with the rate consistently remaining positive. The funding rate rose to around 0.02% during the price surge on February 13th. However, at the time of writing, there has been a minor decrease, with the funding rate now at around 0.01%.
As Ethereum continues its impressive upward trajectory, it remains to be seen if it can sustain this remarkable surge and breach the $2,800 mark. Traders and investors are eagerly watching as the cryptocurrency market evolves, closely monitoring the various indicators and liquidation volumes to make informed decisions.
Analyst comment
Positive news: Ethereum’s rise has led to a high liquidation volume.
Market analysis: The market for Ethereum is expected to continue its upward trend as the strong surge in price and increasing liquidation volume indicate market confidence. Traders show slight aggression, with an increase in buyers’ dominance. The market may see further gains in the short term, with a possible target of $2,800.
