Crypto Market Sees $121 Million in Futures Liquidations in One Hour

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 1 hour ago

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Overview of Liquidations: On Wednesday, the cryptocurrency market faced a sudden wave of forced selling, with over $121 million in futures positions liquidated in just one hour, and total liquidations exceeding $407 million in the past 24 hours, indicating a significant deleveraging trend in recent weeks.
Details of Liquidations: The majority of liquidated positions were long contracts, suggesting that traders betting on price increases were caught off guard by a swift downturn, particularly concentrated on high-leverage trading platforms like Binance, OKX, and Bybit.
Causes of the Sell-Off: While no single catalyst has been confirmed, the drop in Bitcoin's price below a key support level likely triggered stop-loss orders and margin calls, compounded by hawkish comments from the Federal Reserve and a strengthening U.S. dollar, which dampened risk appetite and created a feedback loop of selling pressure.
Market Implications and Trader Warnings: Such events highlight the inherent risks of leveraged trading in the volatile cryptocurrency space, emphasizing the importance of risk management for traders, including the use of stop-losses and avoiding excessive leverage, while large liquidation events can sometimes signal a local bottom, although this is not guaranteed.

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Technical Analysis for ETH

Technical Sentiment Analysis for Ethereum (ETH). As of , Ethereum (ETH) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 7 technical signals, shows that 3 indicators are flashing buy, while 4 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for ETH stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, ETH is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Ethereum (ETH) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	1872.181	1940.74	2020.381	2088.94	2168.581	2237.14	2316.781
Fibonacci	1940.74	1997.353	2032.328	2088.94	2145.553	2180.528	2237.14

About ETH

Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014. The project team managed to raise $18.3 million in Bitcoin, and Ethereum’s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum’s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summer of 2014.The Ethereum Foundation officially launched the blockchain on July 30, 2015, under the prototype codenamed “Frontier.” Since then, there has been several network updates — “Constantinople” on Feb. 28, 2019, “Istanbul” on Dec. 8, 2019, “Muir Glacier” on Jan. 2, 2020, “Berlin” on April 14, 2021, and most recently on Aug. 5, 2021, the “London” hard fork.Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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