• Ethereum long position liquidations reached a record-high of $58 million.
• ETH saw liquidations amounting to $8.42 million, with a higher risk faced by long positions throughout May.
• Despite volatility, a minor price uptrend shows potential for Ethereum recovery.
Ethereum’s Volatile Liquidation Landscape
Ethereum’s long position liquidations recently hit an all-time high of $58 million in May. Despite the volatility, Ethereum has exhibited a slight uptrend in its price, pointing towards potential recovery opportunities going forward.
Liquidation Data Analysis
An analysis of the data revealed that the mean liquidated volume for Ethereum futures contracts’ long positions increased significantly on May 27th, surpassing 32,000 ETH (equivalent to over $58 million). This marks one of the highest ETH Futures Liquidations seen this month. Additionally, CoinGlass reported that 24-hour liquidations totalled to $8.42 million – with $2.48 million attributed to long positions and $5.94 million attributed to short positions – indicating a higher risk associated with long position trades.
High Risk Futures Contracts
Futures contracts are inherently high risk investments due to their design; when traders invest in long positions for Etheruem futures contracts, they are speculating on the price of ETH increasing over time – however if it falls below a certain threshold and traders’ accounts cannot cover losses, liquidations occur as a result.
24-Hour Price Rollercoaster Ride
The current market scenario presents an uncertain landscape for Ethereum traders due to rampant liquidations – however there is potential for growth as evidenced by Ethereum’s minor surge in prices over the past 24 hours despite its entrapment within the $1800 range for a sustained period of time.
Overall, Ethereum has seen record high liquidations topping $58 million in May due to its volatile nature and inherent risks associated with futures contract investing; however there is still potential for growth as evidenced by its recent price uptick despite remaining trapped within the same range for an extended period of time