Ethereum is facing a very crucial moment in its history since its inception as it is moving closer to the proposed ETH “Merge.” The stakes are high and the current market situation is extremely volatile.
ETH futures trade showing a downward slump
Merge is scheduled to be functional by September. It will be operational when the consensus layer of Ethereum has been deployed and simultaneously connected to the various other layers of the Beacon chain. The Beacon chain is the term for the new Proof of Stake blockchain instituted on the network.
Although the technology looks extremely promising, the futures market turned out to be relatively unstable. This was seen wherein short-term and long-term funds averaging around $137 million and $93 million respectively were liquidated.
Ethereum experiences a price surge
Ethereum is currently experiencing a bull run in the market with a nearly 30% increase in the price over the last 24 hours. Ethereum is being traded at a price range of around $1500. This is a major jump considering it was being traded at a price range of $1000 a month ago.
The price action reports point out the fact that instead of the extreme buying pressure in the market Ethereum could easily witness a new price surge. However, there is also a support zone in the $1350 price range.
Exchanges experiencing record liquidations
Although Ethereum has been witnessing a good price run, it has led to massive losses in short liquidation. After a sudden surge was recorded in the past week Ethereum recorded a loss of nearly $337 million. The market is witnessing a recurring trend wherein a high number of liquidations are occurring across various exchanges daily.
But the Saturday loss is the highest in the market compared to losses on various other days. Not only was the market dismal for short futures even long-term futures witnessed a disappointing trend after losing out on nearly $194 million
Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.
Author - Govind R.