Ethereum has jumped back above $2,500, trading near $2,540 to $2,560 on Monday, and traders who were betting against it have paid a heavy price. The move came as the wider market recovered modestly, with Bitcoin holding near $83,700 to $84,000.
Data from CoinGlass shows Ethereum liquidations reached about $48.25 million in the 24 hours to early Monday. Short positions made up about $38.17 million of that total, close to 79 percent, while long positions lost about $10.07 million. In simple words, almost four out of every five dollars wiped out belonged to traders who expected the price to fall.
Ethereum actually led the whole crypto market in liquidations, ahead of Bitcoin at about $46.8 million and Zcash at about $14.8 million. When so many short sellers are forced to close at once, their buying to exit can push the price up even faster, which is why traders call this a short squeeze.
For traders, the next key level to watch is $2,600, which has acted as strong resistance for Ethereum. A clean break above it could open the door to more gains, but a rejection there could trap late buyers. Big US inflation data (CPI) due on Wednesday, October 14, could also swing the whole market, so volatility is likely to stay high this week.
The lesson from today is clear: heavy leverage is dangerous on both sides. Short sellers were confident after last week's fall towards $80,000 in Bitcoin, but one strong bounce was enough to wipe out tens of millions in bearish bets within hours.
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: Crypto Times, CoinGlass, CNBC TV18, CoinGecko
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