Is Selling Pressure on Ethereum Easing After $1.2B Liquidation in Futures?

Ethereum (ETH) recently witnessed a volatile period, marked by a $1.2 billion liquidation event in Ethereum futures. But is the worst over? Recent insights suggest a potential shift in market dynamics. Ethereum’s Futures indicate a potential recovery as selling pressure decreases. Positive market sentiment could push Ethereum out of its recent consolidation range.

Ethereum (ETH), the second-largest cryptocurrency by market cap, has faced a notable wave of sell pressure in early January, wiping out its recent gains. This dip has been significant. The digital asset is experiencing heavy selling pressure amid broader market volatility. The price of ETH has fallen by 15% in the last 24 hours according to coingecko data. Reportedly, the traders of the ether futures lost $333 million to liquidation as the asset dropped 22% under the $1,900 level. This was noted as the highest drop among.

Ethereum (ETH) has recently experienced a significant decrease in selling pressure, signaling a possible market recovery. Here are the four main reasons identified that Ethereum (ETH) suffered a more than 27% crash within the past 48 hours, briefly dropping to a two-year low of $1,410 before recovering the $1,500 level on Monday.

Key Indicators Suggesting Reduced Selling Pressure

Recent insights from CryptoQuant analyst Burak Kesmeci shed light on Ethereum’s Futures market dynamics. Kesmeci highlighted four key metrics: Funding Rate.

Ethereum (ETH) faced a mix of selling and buying pressure from whales. As ETH sank to the $1,500 range, some whales decided to panic-sell, while others got liquidated. Understanding these whale movements is crucial for gauging future price action.

Could this be the beginning of a sustained recovery for Ethereum? Only time will tell, but the reduced selling pressure offers a glimmer of hope for ETH investors.