Renowned cryptocurrency analyst Ash Crypto has expressed concern about Ethereum's future, pointing to potential volatility and price corrections.
Warning About Long Position Liquidations
Ash Crypto noted that the liquidation of short positions could trigger a wave of liquidations on long positions, which is particularly relevant for investors opening them under the influence of fear of missing out (FOMO). According to CoinMarketCap data, ETH was trading at $4,750, with a 2.72% increase in the last 24 hours.
Impact of Liquidations on the Market
The analyst emphasized that following the liquidation of shorts, there could be pressure on long positions, especially given the increase in leveraged trading. This may lead to higher volatility and rapid price trend shifts. Experts also highlight the importance of strict margin management and limiting excessive positioning.
Current Data and Scenarios for ETH
As per CoinMarketCap data, ETH was trading at $4,750 with a market cap of $573.39 billion. Its trading volume in the same period was $61.98 billion, marking a 59.72% increase over the month and an 83.22% increase over 90 days. While this indicates strong upward momentum, caution regarding the vulnerability of leveraged positions is essential. Short-term thresholds are being reassessed, and maintaining above $4,200 is critical for the ongoing uptrend.
Market participants should prepare for potential sudden price changes and limit leverage use in light of current market uncertainties.
