The cryptocurrency market braces for potential turmoil as over $212 million of leveraged long positions face liquidation if the price of Ether (ETH) drops below the $3,100 mark.
Ether’s Decline
In the 24 hours leading up to 10:40 am UTC, Ether experienced a significant drop of 9.3% to $3,254, marking an 18% decline on the weekly chart.
Liquidation Impact
Should Ether fall to $3,100, it would result in the liquidation of over $212 million worth of long leverage, as per Coinglass data. Additionally, dropping below the psychological level of $3,000 would lead to liquidations totaling $237 million.
Total Liquidations and Position Types
In the last 24 hours, price swings caused $624.4 million in liquidations across the market. Most of these liquidations affected long positions, amounting to $514 million, with $110 million affecting short positions.
Exchange Liquidation Data
OKX exchange recorded the highest liquidations at $90.8 million, followed by Binance with $79.9 million, and Bybit with $23.4 million in the past 24 hours, according to Coinglass data. Bitcoin’s significant pullback since March 14 could test institutional appetite, potentially leading to a period of price recalibration in the broader crypto market, according to a Bitfinex report.
Ether Exchange Outflows and Price Impact
Ethereum net outflows from exchanges surged to a new record high as 154,000 Ether moved off crypto exchanges on March 11. This reduction in available supply on exchanges could potentially contribute to upward price movement, as suggested by Bitfinex. The market remains on edge as it navigates through the ongoing volatility, with liquidation risks and institutional sentiment shaping the trajectory of major cryptocurrencies like Ether.
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