The Ethereum price experienced a significant drop on Monday, allegedly triggered by the Ethereum Foundation’s decision to sell coins. This sudden plunge led to a series of liquidation events, resulting in substantial losses for ETH traders. By Tuesday, October 10, the liquidation numbers had skyrocketed to over $32 million.
The data provided by Coinglass reveals that long traders bore the majority of the losses caused by the Ethereum crash. In fact, a staggering 87.61% of the total ETH liquidation volumes were generated from long positions. Out of the $32 million liquidation volumes recorded, long traders accounted for $29.56 million, while short positions only contributed $2.91 million.
Ethereum Takes the Lead
Another noteworthy development was that Ethereum surpassed Bitcoin in terms of liquidation volumes during this particular timeframe. Traditionally, Bitcoin dominates the liquidation scene. However, in the 24-hour period under review, Ethereum registered liquidation volumes of $32.48 million, compared to Bitcoin’s $19.28 million. Once again, long traders were responsible for the majority of Bitcoin’s liquidation volumes.
Although the liquidation volumes for Ethereum and Bitcoin were not the highest seen this year, they carried significant implications. Notably, the Ethereum liquidation event on the Binance crypto exchange involving the ETHBUSD pair recorded the largest single liquidation with a total value of $4.53 million.
Apart from Ethereum and Bitcoin, other assets experienced substantial liquidation volumes. Bitcoin Cash (BCH) witnessed a volume of $3.59 million, XRP recorded $2.77 million, and Solana (SOL) accounted for $2.75 million. In terms of exchanges, Binance emerged as the leader with $24.86 million in volumes, followed by OKX with $17.16 million. ByBit, Huobi, and CoinEx rounded off the top five exchanges with volumes of $6.90 million, $5.8 million, and $1.05 million, respectively.
The Future of Liquidation Volumes
If the market continues to witness large price swings similar to what occurred on Monday, liquidation volumes are expected to persist. However, should the assets in the market trade within a tight range, the volumes are likely to remain low.
The recent Ethereum price plunge and subsequent liquidation events have showcased the impact of trading decisions made by the Ethereum Foundation. Long traders faced the brunt of the losses, and Ethereum outperformed Bitcoin in terms of liquidation volumes. While this event did not set new records for liquidations, it highlights the volatility and risks associated with cryptocurrency trading. Traders must remain vigilant and adapt to market conditions to minimize potential losses in the future.
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