Ethereum Liquidation: Market Correction or Crash?
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Ethereum experienced its largest liquidation wave since 2021, exceeding $900 million in 24 hours, according to Alphractal. This event, part of a broader market downturn with nearly $3 billion in total liquidations, highlights the risks of leveraged trading in cryptocurrencies. While Bitcoin also saw significant liquidations ($800 million), smaller altcoins were disproportionately affected. Alphractal's data reveals that altcoins within the top 700 by market capitalization experienced the most substantial liquidations, suggesting a potential for further decline in smaller tokens. Despite the massive sell-off, both Ethereum and Bitcoin showed slight price increases in the following 24 hours, trading at $4,208 and $113,047 respectively. Alphractal's founder, Joao Wedson, views this deleveraging as an opportunity, suggesting it might be the market flushing out weak hands and setting the stage for a potential future upswing. The high volume of trading, especially in Bitcoin (a 33% increase), indicates substantial market activity and volatility following the liquidation event. The situation warrants close monitoring for potential further price corrections or a sustained market recovery.
(Source: https://bitcoinist.com/ethereum-largest-liquidation-wave/)
