Ethereum Price Plunge Triggers Massive Losses for ETH Traders
The Ethereum price experienced a significant drop after reports emerged that the Ethereum Foundation began selling coins. This decline led to a series of liquidation events, resulting in substantial losses for ETH traders.
Ethereum Liquidation Volumes Surpass $30 Million
By October 10th, the liquidation numbers caused by the price crash surpassed $32 million. Data from Coinglass revealed that long traders bore the brunt of the losses, accounting for 87.61% of all ETH liquidation volumes.
This meant that out of the $32 million in liquidation volumes recorded, $29.56 million came from long positions, while only $2.91 million were from short positions.
Largest Single Liquidation Event and Ethereum’s Volume Supremacy
An individual trade on the Binance crypto exchange involving the ETHBUSD pair resulted in the largest single liquidation event within a 24-hour period, with a total value of $4.53 million.
During this same timeframe, Ethereum surpassed Bitcoin in terms of liquidation volumes. Bitcoin’s liquidation volumes stood at $19.28 million, while Ethereum’s volumes reached $32.48 million. However, similar to ETH, most of BTC’s liquidation volumes came from long traders.
Total Liquidation Figures and Notable Assets
A total of $56.42 million worth of crypto assets were liquidated, with long traders experiencing losses of $44.9 million and short traders facing losses of $11.48 million. Apart from Bitcoin and Ethereum, other assets with notable volumes included Bitcoin Cash (BCH), XRP, and Solana (SOL).
Largest Volumes and Potential for Future Liquidation Events
The Binance exchange recorded the highest volumes at $24.86 million, followed by OKX with $17.16 million. ByBit, Huobi, and CoinEx rounded off the top five exchanges. If there are further significant price swings, liquidation volumes are expected to continue. However, if the market remains stable, these volumes may remain low.
Hot Take: Ethereum’s Price Plunge Spurs Massive Losses for Traders
The recent price plunge in Ethereum has had dire consequences for traders, as liquidation events caused significant losses. Long traders were particularly affected, accounting for the majority of liquidation volumes. While Ethereum surpassed Bitcoin in terms of liquidation volumes during this period, both assets experienced substantial losses. It remains to be seen whether further price fluctuations will trigger additional liquidation events or if the market will stabilize to prevent such occurrences.
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