- ETH price rose over 5% on May 3rd
- This resulted in an increase in the number of liquidations of short positions.
ethereum [ETH] Short-term liquidations in the derivatives market reached a two-month high as prices rose 7% in intraday trading on May 3, the news agency said. coin glass.
In fact, the on-chain data provider went on to reveal that $35 million worth of short ETH positions were liquidated that day. In comparison, the total amount of long-term liquidations was only $7.16 million.
Source: Coinglass
In the asset derivatives market, a liquidation occurs when a trader's position is forced to close due to insufficient funds to maintain it. Short-term liquidations occur when the value of an asset suddenly increases, forcing traders who hold positions that benefit from falling prices to exit their positions.
The altcoin closed above $3,000 on May 3, after trading below that price level since the beginning of the month, according to Santiment data.
Derivatives market traders keep their hands on
The price of ETH, which is still rising at the time of writing, has increased by more than 5% in the past 24 hours. At the time of writing, the market-leading altcoin was worth $3,104.
It is worth noting here that Coinglass data also suggests that the price increase has not caused significant activity in the ETH derivatives market. In fact, trading volume in that market increased by just 2%.
read ethereum [ETH] Price prediction for 2024-2025
Similarly, the coin's futures open interest registered an increase of just 3% over the same period. ETH futures open interest was $10.68 billion at the time of writing. Additionally, ETH options trading volume increased by more than 50% during the period under review.
Options trading gives participants the right to buy or sell an asset on specified dates. Generally, when ETH sees a decrease in options volume, it means that speculation about future price movements is decreasing as market participants wait to see where the coin's market will head next. Masu.
The small increase in ETH futures trading volume and the decline in options trading volume, taken together, suggest that ETH derivatives market participants are adopting a “wait and see” approach. Simply put, they are not making big bets on where the price will go next.
