While dropping below the $1,900 range today, Ethereum (ETH) has taken the lead in total liquidations across the crypto market, surpassing the largest crypto asset Bitcoin (BTC).
As per Coinglass data, ETH witnessed a staggering $135 million in liquidations while BTC nearing $118 million in total liquidations in the past 24 hours. The overall liquidation amount for past 24 hours reaches to $443 million, of which $398 million is in long positions and nearly $45 million in short positions.
This massive liquidation wave for ETH has come amid heightened market volatility as its price loses key support at $2,000 and falling below $1900 today. This price action has triggered forced closures of leveraged positions across major exchanges. The liquidation of over $135 million in ETH suggests that traders may have been overly leveraged, leading to forced liquidations when price movements went against their positions.
The surge in liquidations signals increased turbulence in the crypto market, as investors react to recently increased sell-side pressure and a sudden shifting in market sentiment.
Bitcoin, which usually leads liquidation volumes on a daily basis, has today followed closely with $118 million in liquidations. This shift highlights Ethereum’s growing dominance in derivative trading and its increased volatility compared to BTC.
Although this is not the first time ETH has led the market in liquidation volumes as in May and August 2023, ETH witnessed massive volatility and increased liquidation figures than Bitcoin. With ETH’s liquidation surpassing BTC’s, analysts are now predicting further price swings in the crypto markets.
Also read: Does Coinbase’s Dominance in ETH Staking Threaten Decentralization?
