Ethereum Climbs, Pressures Short Sellers
The post Ethereum Climbs, Pressures Short Sellers appeared on BitcoinEthereumNews.com.
Ethereum has recently emerged at the forefront of the cryptocurrency landscape, enjoying a dramatic rise of nearly 40% in a single week. This price surge has pushed ETH above the $2,500 mark, bringing approximately 6.61 million Ethereum holders on the verge of profitability. The rally has also created challenges for bearish positions, with short sellers possibly facing liquidation if prices climb just 3% more, putting around $800 million at risk. Despite these dramatic developments, caution is advised due to potential market volatility. What Could a Price Increase Mean for ETH Holders?Could Volatility Impact Leveraged Positions? What Could a Price Increase Mean for ETH Holders? Ethereum’s rapid ascent in early May saw its price soar from $1,812 to $2,584, highlighted by the emergence of three consecutive bullish candles, known in trading circles as the “three white soldiers.” Such patterns emphasize the market dominance of ETH buyers. Furthermore, chart patterns hint at a possible reversal in trends, catching the interest of optimistic investors. Data from IntoTheBlock reveals that nearly 6.61 million investors purchased Ethereum at an average of $2,462 per token. With current prices above $2,557, many of these positions are in favorable territory, potentially solidifying a strong support level as 67 million ETH benefit. Investors are keenly observing this critical threshold, balancing caution with a readiness to capitalize on upward momentum. Could Volatility Impact Leveraged Positions? If Ethereum’s price increases by just 3%, Coinglass’s liquidation data suggests that almost $786 million in short positions could be vulnerable. Such developments might spark further buying interest, continuing the bullish momentum. Conversely, a 3% decrease to $2,438 could result in liquidity risks for $715 million in long positions. This scenario suggests that sudden drops could destabilize leveraged trades, highlighting the importance of careful positioning. Additionally, technical indicators like the RSI suggest that the asset…
