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Ethereum Single-Day Liquidations Reach Three-Year High As Price Breaks $1,900

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Ethereum is back on another winning streak as it breaks the $1,900 mark. This follows a weekend that was mostly low-key but eventually turned around for the better. After that, there were many short liquidations in the market due to the recovery. However, the liquidation of Ethereum reached a new three-year high, with thousands of short positions liquidated on the Bitfinex exchange.

The number of short liquidations on Bitfinex is on the rise

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Cryptocurrency exchange Bitfinex is one of the largest exchanges in the world and is very popular among both amateurs and professional traders. That’s why liquidation volumes often pronounced on the platform. However, Monday’s liquidation will set a new record for the market, given that the Ethereum liquidation alone exceeded $600 million.

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This resulted in the largest daily liquidation of a digital asset in three years. In total, more than $690 million in Ethereum shorts have been liquidated across various exchanges. Shorts accounted for 99.5% of those liquidations recorded over a four-hour period. However, most of it came from the Bitfinex crypto exchange. Nearly $670 million was liquidated on the exchange as ETH topped the $1,900 level.

Other cryptocurrencies such as bitcoin suffered in the same time period, but none came close to the extent that Ethereum traders were liquidated. This shows that sentiment is changing towards positive in the long term for the digital asset.

Ethereum stands its ground

Ethereum is recovering along with Bitcoin. This took the digital asset above its 20-day moving average. The rise above $1,900 remains a big deal for ETH, which has been struggling with the $1,700 level of late. It also marks the only green close in recent weeks for the digital asset as it closely lagged the price of bitcoin.

ETH price chart from TradingView.com

ETH price breaks above $1,900 | Source: ETHUSD on TradingView.com

However, the number of liquidations in Ethereum has decreased. The four-hour period in which Bitfinex’s short selling shook the market quickly passed, paving the way for more reasonable liquidation volumes. There are currently less than $130 million in liquidation in the crypto market in the last 24 hours.

| Institutional Investors Turn to Competitors as Ethereum Falls

Since then, Ethereum has again fallen behind Bitcoin when it comes to liquidation. The pioneering digital asset has seen traders lose $44.4 million in the last day as of this writing, while ETH traders have recorded a loss of $32 million. A total of 48,219 traders were liquidated and Bitfinex still maintains the largest single liquidation with a total of $2.06 million on a single trade.

Featured image from CNBC, chart from TradingView.com

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Credit : www.newsbtc.com

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