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
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.