Ethereum has been in recovery mode since developers announced a possible date for the Merge. Since this date is close, it has sparked a lot of positivity among community members who looking forward to the leading smart contracts platform’s move to proof of stake. This recovery has since triggered a liquidation event that has in no way slowed down as almost 90,000 traders have watched their positions liquidated.
Ethereum Liquidations Ramp Up
The recent recovery trend has seen the price of Ethereum rise above $1,400 towards a new one month high. In its wake, it has left a trail of blood mostly comprised of the positions of short traders. These traders had been betting against the digital asset’s ability to recover and are suffering now that it has exceeded everyone’s expectations.
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In the last 24 hours, Ethereum has recorded the largest liquidations of any cryptocurrency. This is because the asset’s recovery has been one of the most prominent in this time period. Data from Coinglass shows that ETH traders have seen more than $230 million in liquidations, the majority of which have been short traders.
Liqudations ramp up | Source: Coinglass
The crypto market in its entirety is now close to $400 million in liquidations in the last day at the time of this writing. A total of 86,525 traders have been liquidated with the largest single liquidation happening across the ETH-PERP pair on the FTX crypto exchange.
ETH Is Not Stopping
Ethereum’s price is gearing up to test an incredibly important price level at the time of this writing. The cryptocurrency has now cemented its position above its 20-day moving average and the next stop is $1,500, despite singnificant resistance mounting up at this level.
ETH price recovers above $1,400 | Source: ETHUSD on TradingView.com
Testing $1,500 is important to Ethereum for two reasons. Not only is this the major resistance in its campaign to $1,700, it is also a test of the digital asset’s ability to break through the 50-day hurdle. Staying above this point is important for ETH if it is to continue its bull rally.
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Ethereum’s recovery is also helping to turn the sell sentiment, albeit in the short-term. For the longer term, the digital asset would have to hold abide $1,500 and turn this resistance point to a support level. Otherwise, its hold on the $1,400 remains shaky.
Featured image from Analytics Insight, chart from TradingView.com
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