- Both longs and shorts experienced a turbulent time after the price of ETH went up and down
- Realized gains rose, indicating the value could fall below $3,400
High market volatility caused market liquidations to reach $215 million. From this Ethereum [ETH] contracts totaled $50.61 million, according to Coinglass data.
Liquidations occur when a trader does not have enough margin balance to keep a position open. The strong closure is necessary to prevent further losses.
Stormy season for the market
For ETH, the high liquidations can be linked to the price of the cryptocurrency. A look at the price action revealed that it dropped to $3,368 sometime on June 14. It later rose to $3,512 before topping $3,500 at press time.
As a result of these price fluctuations, both longs and shorts were not spared. Longs refer to traders who bet on the price of an asset to rise. Shorts, on the other hand, are traders who bet on a price drop.
Source: Coinglass
However, traders seemed to expect a price drop. This is due to the Put/Call ratio before Friday’s options expiration. According to Deribit, the derivatives exchange, Ethereum’s Put/Call Ratio was 0.37.
Since the ratio was below 0.50, expectations were bearish. However, it seemed that participants did not expect the high volatility.
Regarding the price, AMBCrypto also looked at the realized profit. As the name implies, this represents the total of all moved coins whose last price was lower than the press time value.
ETH plans to fluctuate between $3,400 and $3,600
On June 12, ETHs Realized profit amounted to $55.18 million. By June 14, the value had risen to $104.58 million. An increase in this measure implies that holders are making gains, and this could lead to a price drop on the charts.
However, if the metric stabilizes itself, selling pressure will decrease across the market. For Ethereum, the realized gains appear to have settled around the aforementioned value. Therefore, it is likely that the altcoins will trade between $3,400 and $3,600 in the coming days.
Source: Glassnode
AMBCrypto too analyzed Trade inflows and outflows to assess ETH’s next move. Exchange inflows track the number of coins sent to exchanges.
If this increases, it means holders are planning to sell. When this happens, the price of a cryptocurrency usually drops. Exchange outflows, on the other hand, measure the number of coins sent out of exchanges.
At the time of writing, ETH’s inflows on the exchange amounted to $34,400, while the altcoin’s outflows amounted to 24,100. The difference in the flows implied that there was more ETH for sale than the ETH held in the cold wallet.
Source: Santiment
Read Ethereum’s [ETH] Price forecast 2024-2025
If this continues, the price of the cryptocurrency could fall below $3,400, as it did on June 14. On the other hand, a drop in selling pressure could stop this decline and ETH could continue to consolidate on the charts.