Ether’s $3,100 Price Could Liquidate $212M in Leveraged Longs

The cryptocurrency market is at risk of experiencing significant losses if the price of Ether (ETH) drops below $3,100. Within a 24-hour period, Ether’s price fell by 9.3% to reach $3,254. This decline amounts to an overall decrease of 18% for the week. If the price continues to fall and reaches $3,100, it could result in more than $212 million of leveraged long positions being liquidated. If Ether falls below the psychologically significant $3,000 mark, liquidations could amount to $237 million. The high volatility in recent times led to a total of $624.4 million in liquidations within the past 24 hours. Most of these liquidations affected long positions, resulting in the wiping out of $514 million worth of long positions and $110 million worth of short positions. The exchanges with the highest amount of liquidations were OKX ($90.8 million), Binance ($79.9 million), and Bybit ($23.4 million).

According to a report from Bitfinex Analyst shared with , Bitcoin’s sharp pullback from March 14 may test the interest of institutional investors in the cryptocurrency market. This could potentially lead to a period of price recalibration within the broader crypto market. The report also highlights the resilience of the altcoin market, particularly Ethereum and Layer 1 blockchain projects, as evidenced by increasing investment flows and record outflows of Ether. The performance of large-cap altcoins will likely play a crucial role in determining the market’s trajectory as it continues to evolve.

Interestingly, there has been a new record high of net outflows of Ether from exchanges, with 154,000 Ether being moved off exchanges on March 11. This reduction in available supply on exchanges could potentially result in upward price movement for Ether. Bitfinex suggests that this netflow data indicates a possible short-term upward trajectory for Ether, speculating that traders may be moving their Ether off-exchanges to trade coins on an ERC-20 protocol or a Layer 2 network like the Base mainnet.