In the last two days, ETH fell by almost $ 10 billion with open interest, while BTC is throwing more than $ 5 billion.
Source: Coinglass
These drawings knew a few weeks of gradual futures accumulation.
Source: Coinglass
This abrupt drop is a sign of massive settlement of lifting tree positions, probably activated by step -by -step liquidations and panic outputs.
Source: TradingView
In the meantime, the ETH/BTC ratio also broke lower after a strong rally in July, from 0.0325 to 0.0307.
Turn and restore financing percentages
On August 1, Ethereum and Bitcoin financing percentages on Binance become a short negative; An unusual sign of heavy bearish pressure, with ETH -Arrest -0.006% and BTC dip to -0.003%.
This inversion indicated that short sellers paid aggressively to keep positions open, often seen during long squeeze cascades. From 2 August, however, the financing percentages are stabilized on trade fairs.
Source: Coinalyze
Aggregated BTC financing has been found to +0.0042 and ETH has been back to +0.0063.
Source: Coinalyze
This rebound suggests that Beararish Momentum can cool, and a shift to the market can bring back in balance (or even a short squeeze).
Liquidation zones illuminate the graphs
Source: Coinglass
The BTC and ETH liquidation heat maps show livered lungs were wiped out en masse during the price slop.
Bright yellow tires cluster around $ 117k for BTC and $ 3600 for ETH on 2 August, which shows where Longs were trapped before the cascade readings accelerated the drawing.
Source: Coinglass
With price action that now consolidates just below these levels, they can act as a resistance in the short term, not only as a result of technical, but also trader psychology.
Nevertheless, the absence of heavy liquidation tires suggests under current prices that the worst of the delevering may have elapsed.
That said, upward recovery is likely to experience resistance in the vicinity of previously liquidated zones, now psychological barriers.