Ethereum has recently continued to fluctuate around the $2,200 mark. On November 7, #ETH was priced at around $2,235. Although selling pressure in the market has continued to build, it has so far managed to hold this important level.
The main pressure behind this decline has come from the derivatives market. Over the past 24 hours, more than $210 million worth of positions have been liquidated, including about $179 million in long positions.
Put simply, many investors had previously used leverage to bet on ETH rising. But after prices fell, they no longer had enough margin, leaving trading platforms no choice but to forcibly close their positions. These forced sales added further selling pressure, making prices more vulnerable to declines.
ETH has also recently been affected by weakness in U.S. stocks. On November 6, ETH briefly fell 4.86%, dropping to around $2,212. At the time, its correlation with the S&P 500 reached 0.83, indicating that the two were moving in close tandem. The market anxiety triggered by falling technology stocks also spread to the cryptocurrency market.
However, large-scale liquidations have another side: once many highly leveraged positions have been cleared out, short-term forced selling may ease, giving the market a chance to find its direction again.
The main pressure behind this decline has come from the derivatives market. Over the past 24 hours, more than $210 million worth of positions have been liquidated, including about $179 million in long positions.
Put simply, many investors had previously used leverage to bet on ETH rising. But after prices fell, they no longer had enough margin, leaving trading platforms no choice but to forcibly close their positions. These forced sales added further selling pressure, making prices more vulnerable to declines.
ETH has also recently been affected by weakness in U.S. stocks. On November 6, ETH briefly fell 4.86%, dropping to around $2,212. At the time, its correlation with the S&P 500 reached 0.83, indicating that the two were moving in close tandem. The market anxiety triggered by falling technology stocks also spread to the cryptocurrency market.
However, large-scale liquidations have another side: once many highly leveraged positions have been cleared out, short-term forced selling may ease, giving the market a chance to find its direction again.
