Bitcoin (BTC) and ether (ETH) lost pivotal support levels in the past 24 hours amid weakening sentiment for the broader crypto market – a move that caused over $520 million in liquidations, data shows.
Ether-tracked futures lost upwards of $236 million, nearly double those of $125 million on bitcoin futures. The losses were unusual for ether, which mostly sees lower liquidations than bitcoin on average trading days.
Futures of Stepn’s GMT tokens racked up $23 million in losses amid headwinds from Chinese authorities, who banned gameplay of the popular ‘step-to-earn’ protocol in the country. Futures on Solana (SOL) lost $11 million, while metaverse-focused Sandbox (SAND) saw $9 million in losses.
Crypto futures saw over $520 million in liquidations. (Coinglass)
Ether dropped to as low as $1,728 in early Asian hours on Friday, losing some 9% of its value over the past 24 hours. A sudden dip to similar price levels on Thursday night was prompted brought up by traders, but this morning’s slide was gradual.
Price-charts suggest support at current levels and resistance at $1,900, which acted as pivotal support earlier this month. Similar prices were previously seen in July 2021, and losing the level could see ether drop to the $1,300-$1,500 range or lower.
Ether fell to a level previously seen in mid 2021. (TradingView)
A fundamental reason for the drop could be a lack of demand for Ethereum’s block space, as per data from analytics firm Glassnode. ‘Gas,’ or network fees, prices have been trending downward since December and recently reached multiyear lows, the firm said in a note earlier this week.
Block space is the amount of transactional data that can be included in each block, with users paying "gas" fees for doing so. Lower block demand generally means a fall in user activity on any particular network.
Meanwhile, analytics firm Coinalyze said in a Twitter message that Thursday’s volatility in ether was succeeded by a sudden increase in open interest on ether futures. Open Interest is the amount of unsettled futures in any market, and an increase in the figure usually implies traders are opening long, or short, positions in anticipation of a move.
Ether and other major cryptocurrencies seemed to stabilize at writing time. Futures and options data for bitcoin suggests traders are positioning for a bearish period ahead, however.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.