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Ether is seen liquidating at a higher rate than bitcoin, hitting below $3.2K

Ether is seen liquidating at a higher rate than bitcoin, hitting below $3.2K
Ether is seen liquidating at a higher rate than bitcoin, hitting below $3.2K

A $160 million worth of ETH long positions were liquidated

Traders lost $182 million on hedged products in the past 24 hours, with ETH futures taking the brunt. Bitcoin futures usually take up more of those losses.

Liquidations are enforced by an exchange when someone suffers near to complete losses of an initial margin. This is usually the case in futures trading, which only tracks the prices of a commodity, rather than the spot.

The vast majority of losses, totaling $182 million, came from long positions. The other $22 million in losses came from short positions that were invoked. Almost 80% of the liquidations occurred on the crypto exchange OKEx, which was responsible for $78.7 million worth of losses.

Longs are investments in things with an expectation of rising prices. Shorts are bets on how much the thing they invest in will grow.

Immediately after plunging to $3,113 and briefly rising back up to $3,950 during early trading hours on Friday, Ether flashed a rare signal of hope by gaining over $90. On Friday markets had a lower value than the previous day, and this is just one recent example of a trend that has been going on for quite some time. The U.S. Federal Reserve released minutes from its December meeting and it signaled the need to tighten financial policies which caused many people to sell off their risky assets

The relative strength index reached oversold levels again on Friday after briefly venturing out of that zone on Thursday night. When the RSI passes the top of said zone, it means assets might be due for a price decrease.

Ether fell below $4,000 in December, which can have some significant implications for the market.

One of the top sellers of the last two months was Ethereum Foundation, a nonprofit which oversees development on the Ethereum network. The Ethereum foundation’s cold wallet is rumored to have transferred 20,000 ethers (worth over $90 million) to the crypto exchange Kraken in November. The transfer may have been a contributing factor in some of the selling pressure from crypto enthusiasts lately.

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