Ethereum has been in recovery mode since the developers announced a possible date for the merger. Given that this date is near, it has generated a lot of positivity among community members who are eagerly awaiting the move of the leading smart contract platform to proof-of-stake. This recovery has since triggered a liquidation event which has by no means slowed down as nearly 90,000 traders have had their positions liquidated.
Rise of Ethereum liquidations
The recent recovery trend saw Ethereum price break above $1,400 to hit a new 1-month high. In its wake, it left a trail of blood consisting mostly of short trader positions. These traders were betting against the recoverability of the digital asset and are now suffering that it has exceeded everyone’s expectations.
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In the past 24 hours, Ethereum has recorded the largest liquidations of any cryptocurrency. Indeed, the recovery of the asset was one of the most important of this period. Data from coin glass shows that ETH traders saw over $230 million in liquidations, the majority of which were short traders.
Liqudations ramp up | Source: Coinglass
The crypto market as a whole is now close to $400 million in liquidations over the past day as of this writing. A total of 86,525 traders were liquidated, with the largest single liquidation occurring on the ETH-PERP pair on the FTX crypto exchange.
ETH does not stop
Ethereum price is gearing up to test an incredibly large price level as of this writing. The cryptocurrency has now consolidated its position above its 20-day moving average and the next stop is $1,500, despite significant resistance there.
ETH price recovers above $1,400 | Source: ETHUSD on TradingView.com
Testing $1,500 is important for Ethereum for two reasons. Not only is this the main resistance of its campaign at $1,700, but it is also a test of the digital asset’s ability to clear the 50-day hurdle. Staying above this point is important for ETH if it wants to continue its bullish rally.
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The rally in Ethereum is also helping to turn the selling sentiment around, albeit in the short term. In the longer term, the digital asset should hold $1,500 and turn this resistance point into a support level. Otherwise, its hold on $1,400 remains fragile.
Featured image from Analytics Insight, chart from TradingView.com
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