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Ethereum Single-Day Liquidations Reach Three-Year High As Price Breaks $1,900

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Ethereum is back on another winning streak as it breaks above $1,900. This follows a weekend that was mostly characterized by low momentum but would eventually turn for the better. In the wake of this, there have been a lot of short liquidations in the market due to the recovery. However, the liquidations in Ethereum hit a new three-year high when thousands of short positions were liquidated on the Bitfinex cryptocurrency exchange.

Bitfinex Short Liquidations Grow

The Bitfinex crypto exchange is one of the largest exchanges in the world and is highly favored by both amateur and professional traders. This is why liquidation volumes are oftentimes pronounced on the platform. However, Monday’s liquidations would pose a new record for the market given that Ethereum liquidations alone had surged past $600 million.

Related Reading | Bitcoin Dominates Derivatives Market To End May On A High Note

This pushed the digital asset into the largest daily liquidations in three years. In total, there were more than $690 million in Ethereum shorts liquidated across various exchanges. Shorts made up 99.5% of these liquidations that were recorded over a four-hour period. However, the majority had come from the Bitfinex crypto exchange. It came out to almost $670 million liquidated on the exchange as ETH had barreled past the $1,900 level.

Other cryptocurrencies such as Bitcoin had taken a hit in the same timeframe but none close to the degree to which Ethereum traders had been liquidated. It shows that sentiment is turning towards the positive it comes to the long-term for the digital asset.

Ethereum Standing Its Ground

Ethereum has been on a recovery trend alongside Bitcoin. This has shot the digital asset above its 20-day moving average. Making its way above $1,900 remains an important point for ETH which has recently been struggling with the $1,700 level. It also marks the only green close in recent weeks for the digital asset as it had been closely trailing the price of Bitcoin.

ETH price chart from TradingView.com

ETH price breaks above $1,900 | Source: ETHUSD on TradingView.com

Liquidations in Ethereum have eased up, however. The four-hour period where the Bitfinex short liquidations had rocked the market had quickly passed, paving way for more reasonable liquidation volumes. Presently, liquidations across the crypto market sit at less than $130 million for the last 24 hours.

Related Reading | Institutional Investors Turn To Competitors As Ethereum Tumbles

Ethereum has since gone back to trailing behind Bitcoin when it comes to liquidations. The pioneer digital asset has seen traders lose $44.4 million in the past one day at the time of this writing while ETH traders have recorded $32 million in losses. A total of 48,219 traders have been liquidated and Bitfinex still maintains the largest single liquidation with a total of $2.06 million from a single trade.

Featured image from CNBC, chart from TradingView.com

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