The recent market crash has once again sent Ethereum crashing towards $2,500. This dreaded point for the digital asset has since been avoided with much success but with market momentum declining every day, there may be more to come. As expected, the price decline has led to liquidations in the cryptocurrency, running into $50 million liquidated over the last day.
Ethereum Liquidations Ramp Up
In the last 24 hours, bitcoin has lost its footing above $40K and this decline has been felt across the market. Ethereum had been trying to establish meaningful support above the $2,600 level but had eventually lost support. This led to a sharp crumble back to the low $2,500, coming close to testing the $2,522 support level but not quite reaching it. However, the damage of this decline was already being felt by traders in the market.
Related Reading | Goldman Sachs Will Now Offer Its Clients Ethereum Funds Via Galaxy Digital
With the crash, Ethereum’s long liquidations had piled up pretty quickly. Over the last day, there have been more than $56 million in liquidations in just ETH alone. Liquidations over the past 12 hours made up the majority of this figure with more than $30 million in liquidations already recorded over this time period. Long liquidations obviously made up the majority of this but there were some shorts thrown in there too.
ETH close to support as liquidations ramp up | Source: ETHUSD on TradingView.com
The general crypto market has also followed this liquidation trend. Bitcoin alone has gotten close to $90 million liquidations in the past day too. And in total, there have been more than $230 million in liquidations in just one day.
Related Reading | $5 Billion Ethereum Burned Since August 2021, Fees Stabilized?
As expected, Ethereum has led the liquidations across the altcoins but there have been some notable liquidations in other altcoins. An example is LUNA which has seen $5.8 million in liquidations over the past 12 hours. Solana follows closely behind with $4.62 million in liquidations, while $Ripple clenched 5th place with $3.35 million.
Ethereum is still trading below the 50-day moving average, which shows that sentiment towards the digital asset still remains mostly negative. With the price starting to recover, more shorts than longs are being liquidated in the past hour. However, with market indicators pointing towards further decline, then traders could be seeing more long liquidations if the price takes another nosedive.
Featured image from RockX, chart from TradingView.com