Data
shows
that
a
lot
of
long
liquidations
have
piled
up
on
exchanges
after
the
Ethereum
ETF
approval,
which
was
a
sell-the-news
event.
Ethereum
Price
Has
Been
Down
Since
Spot
ETFs
Gained
Approval
Yesterday,
the
US
Securities
and
Exchange
Commission
(SEC)
finally
gave
the
green
light
on
all
eight
Ethereum
spot
exchange-traded
funds
(ETFs)
that
were
awaiting
approval.
Spot
ETFs
are
basically
investment
vehicles
that
provide
a
way
to
gain
indirect
exposure
to
ETH’s
price
movements
without
actually
owning
any
tokens.
ETFs
are
available
through
means
that
traditional
investors
would
be
familiar
with,
so
those
who
don’t
want
to
bother
with
cryptocurrency
exchanges
and
wallets
could
decide
to
invest
in
the
asset
through
them.
The
market
had
been
anticipating
this
event,
just
like
the
Bitcoin
spot
ETF
approval
back
in
January.
In
BTC’s
case,
the
inflows
through
the
ETFs
eventually
fueled
a
rally
towards
a
new
all-time
high
(ATH).
When
the
Bitcoin
ETFs
had
just
been
approved,
though,
the
investors
initially
showed
a
selling
reaction,
which
resulted
in
the
cryptocurrency
registering
a
significant
drawdown.
It
would
appear
that
the
Ethereum
spot
ETF
approval
has
also
been
met
with
some
selling
so
far,
as
coins
across
the
sector
have
been
in
the
red
over
the
past
24
hours.
Ethereum
itself
is
down
more
than
5%
in
the
window.
The price of the asset appears to have shot up over the last few days | Source: ETHUSD on TradingView
Despite
the
decline,
Ethereum
investors
would
still
be
holding
notable
profits,
as
the
coin
at
its
current
price
of
$3,700
is
still
up
over
23%
in
the
past
week.
It
would
appear
that
the
approval
and
the
subsequent
selloff
may
have
caught
the
market
off-guard,
as
the
derivatives
side
has
registered
some
large
liquidations
in
the
last
24
hours.
$384
Million
In
Cryptocurrency
Contracts
Found
Liquidation
In
Past
Day
According
to
data
from
CoinGlass,
the
cryptocurrency
derivatives
market
has
observed
a
mass
flush
during
the
past
day.
The
below
table
shows
what
the
numbers
have
looked
like.
The data for the cryptocurrency-related liquidations over the last 24 hours | Source: CoinGlass
As
is
visible,
over
$384
million
in
cryptocurrency
contracts
have
seen
forceful
closure
during
this
period.
More
than
$297
million
of
these
liquidations
involved
the
long
holders
alone.
This
means
these
investors
betting
on
a
bullish
outcome
made
up
77%
of
the
flush.
This
naturally
lines
up,
as
the
overall
price
volatility
in
the
past
day
has
been
towards
the
downside.
It’s
also
not
surprising
that
Ethereum,
which
has
been
the
focus
of
attention
recently,
contributed
the
largest
share
to
this
liquidation
squeeze,
as
the
heatmap
below
reveals.
Looks like ETH liquidations have been more than double that of BTC's | Source: CoinGlass
At
more
than
$150
million
liquidations,
Ethereum
has
managed
to
significantly
outdo
Bitcoin,
which
has
seen
contracts
worth
$74
million
flushed
down.
Featured
image
from
Kanchanara
on
Unsplash.com,
CoinGlass.com,
chart
from
TradingView.com
Go to Source
Author: Keshav Verma
