In the last 24 hours, a significant event occurred in the Ethereum market: around $198 million in short positions were liquidated. This liquidation had a serious impact on the derivatives markets and increased investor interest.
Liquidations and Their Consequences
Approximately $198 million in short positions for Ethereum (ETH) were liquidated over the last 24 hours, marking significant changes in derivatives trading. According to Crypto Rover, this event triggered a wave of liquidations, which was also noted by other analytics platforms such as TrendSpider.
Changes in the Derivatives Market
Crypto analyst Crypto Rover highlighted a significant wipe-out in short positions in Ethereum, stating there was a "broad short wipe-out in Ethereum derivatives." According to TrendSpider, total liquidations exceeded $218 million, which underscores volatility in risk allocation in the derivatives market. The trading volume in the past 24 hours surged to $189.7 billion, reflecting a rapid change in market dynamics.
The Future of Ethereum and Investor Interest
In light of liquidations, derivatives funding rates shifted bullish, with longs paying a 0.05% premium to shorts. This situation indicates a growing interest in Ethereum among investors. Past similar liquidations often occurred during high-volatility periods, particularly when institutional participation increased due to major network upgrades and improvements in DeFi protocols.
In summary, the liquidation of $198 million in short positions for Ethereum not only changed the daily dynamics in the derivatives market but also demonstrated increasing interest from investors. It will be crucial to monitor further developments in the ecosystem, as positive progress in the Ethereum network will be accompanied by market activation.
