A $ETH coin was pushed above 2,600$, and with the breakout there were huge liquidations for shorts; within one hour, liquidations tied to ETH surpassed $112 million, while most liquidations in the market were on short positions. This helped accelerate the rally beyond natural demand.
After that, the price reversed violently. Market data indicates that around $471 million in positions were liquidated within four hours in the crypto market—$348 million in shorts and $123 million in longs. In other words, the market hit shorts during the uptrend, then hit longs during the reversal. The largest single liquidation mentioned was an ETH position worth $20.28 million.
On top of that, an important economic factor came into play: the US inflation for August rose 0.4% month-over-month and 3.4% year-over-year, and market expectations for a rate hike at the upcoming Federal meeting increased to about 87%. Higher rate and yield expectations typically pressure high-risk assets such as cryptocurrencies.
Conclusion 📊: I think the rally was amplified by a Short Squeeze; then once its fuel ran out, profit-taking and macro pressure kicked in, and the move quickly turned into a Long Squeeze. So the action looks more like liquidity being pulled from both sides than a traditional Pump & Dump.
#ETH
After that, the price reversed violently. Market data indicates that around $471 million in positions were liquidated within four hours in the crypto market—$348 million in shorts and $123 million in longs. In other words, the market hit shorts during the uptrend, then hit longs during the reversal. The largest single liquidation mentioned was an ETH position worth $20.28 million.
On top of that, an important economic factor came into play: the US inflation for August rose 0.4% month-over-month and 3.4% year-over-year, and market expectations for a rate hike at the upcoming Federal meeting increased to about 87%. Higher rate and yield expectations typically pressure high-risk assets such as cryptocurrencies.
Conclusion 📊: I think the rally was amplified by a Short Squeeze; then once its fuel ran out, profit-taking and macro pressure kicked in, and the move quickly turned into a Long Squeeze. So the action looks more like liquidity being pulled from both sides than a traditional Pump & Dump.
#ETH
