- The Rebound of Ethereum above $ 2,670 led to a huge short squeeze, so that $ 500 million was liquidated in shorts
- Rising ETH entry into derivatives and positive financing percentages suggest that there may be more volatility
Ethereum [ETH] Repeated just remembered how a short squeeze feels.
After he had folded his way above $ 2,670, the sudden rebound only wiped more than half a billion dollars in short positions on Binance road, which marked one of the biggest liquidations that the market has seen in recent times.
And now, with fresh ETH that flows in derived exchanges, the setup looks like more.
Ethereum: What has the squeeze activated?
The Ethereum meeting above $ 2,670 caught overwhelming leverage, so that one of the largest liquidation waves has been rejected in recent months.
Cryptoquant -Data Shows a dramatic $ 500 million in short liquidations on Binance – a clear sign of overcrowded Bearish bets.
Source: Cryptuquant
Furthermore, in addition to expecting traders aggressive short positions. But when Eth reversed the direction, Margin forced a quick purchase.
These forced liquidations fed the price rally, squeezed late shorts and rapidly shifting market sentiment.
The chain reaction pushed the financing percentages to a positive area, which emphasized the sharp settlement of Bearish leverage.
Numbers point to the mounting of purification pressure
After the short squeeze, Ethereum sees a sharp increase in deposits for derived exchanges, many of which are more than 30,000 ETH per transaction, as shown in the graph.
Source: Cryptuquant
The turnout that started around 13 June indicates rapid repositioning of the trader. While some can cover exposure after pressing, the scale and timing of the inflow point to increasing short-selling interest.
If the price of Ethereum loses the momentum, this inflow can lead to renewed bearish leverage, which increases the risk of another sharp settlement.
In short, more market turbulence could be on the horizon.
Financing percentages become positive as open interest stabilizes
The Rebound of Ethereum pushed the financing percentages into positive territory, indicating a growing bullish sentiment despite recent market volatility.
During the rally, there was aggregated open interest, but fell sharply in the midst of liquidations and then stabilized almost $ 15.4 billion.
The rise in the financing rates indicates that long positions are reimbursed to remain open.