The cryptocurrency sector is on edge, with projections indicating that a dip in Ether’s value below $3,100 could lead to the liquidation of leveraged long positions amounting to more than $212 million.
This prediction comes amidst a sharp decline in Ether‘s price, which fell 9.3% to $3,254 over a 24-hour period ending at 10:40 am UTC.
Over the week, Ether has seen a downturn of over 18%, and a further drop to $3,100 could erase $212 million in long leveraged investments, based on data from Coinglass.
Should Ether’s price drop below the crucial $3,000 mark, liquidations are expected to surge to $237 million.
The market’s recent volatility has led to significant liquidations amounting to $624.4 million in the last 24 hours alone.
This turbulence has predominantly affected long positions—investments made with the expectation of a price increase—eradicating $514 million in long positions and $110 million in short positions.
The OKX exchange experienced the highest liquidation volume at $90.8 million, with Binance and Bybit following at $79.9 million and $23.4 million respectively, according to Coinglass statistics.
A Bitfinex report, shared with Cointelegraph, notes Bitcoin’s recent sharp downturn since March 14, positing it as a potential test of institutional interest that could lead to a recalibration of prices across the cryptocurrency market: “We anticipate a period of market recalibration as investors seek equilibrium amidst unprecedented inflows into Spot Bitcoin ETFs.
READ MORE: Bitcoin Nears $60K Amid Weekend Sell-Off; Market Eyes ETF Resurgence and Futures Gap for Recovery
Conversely, the altcoin market’s resilience, evidenced by growing investment flows and record outflows of ETH, underscores a bullish narrative for Ethereum and Layer 1 blockchain projects.
As the market evolves, the performance of large-cap altcoins will be instrumental in determining its trajectory.”
Further, a record high in Ether net outflows from exchanges was observed on March 11, with 154,000 Ether withdrawn.
This reduction in exchange-available supply might push prices upward. Bitfinex suggests, “The recent netflow data indicates a potential short-term upward trajectory for Ether, however, we suspect this could be the traders moving their Ether off-exchanges to trade coins on an ERC-20 protocol or a Layer 2 like the Base mainnet.”
This movement indicates a strategic shift by traders, potentially aiming for gains through alternative trading platforms or technologies.
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