Institutional long positions wiped out; HIP takes over nearly $100 million in longs, and ETH faces another wave of selling pressure.
Reports say institutional-grade leveraged longs were brutally liquidated, forcing HIP to take over nearly $100 million worth of long positions, leaving the platform with the positions on its books. Liquidations themselves create concentrated selling pressure. After large institutional long positions are wiped out, the market often cuts positions first and considers a rebound later. The platform’s need to take over these positions suggests the order book lacks the depth to absorb the selling pressure automatically, so short-term buying support is likely to be strained. The event is bearish in the short term and is a classic signal of deleveraging during a downturn.
For holders and traders, keep an eye on three things: whether funding rates turn negative, whether open interest (OI) continues to decline, and whether spot buying can genuinely absorb volume during a downturn. If a cascade of liquidations follows, ETH volatility will increase further, and the pullback could be deeper than expected.
Scenario 1: Funding rates turn negative and OI continues to fall, indicating that leverage is being flushed out and volatility may gradually subside. Scenario 2: Spot buying fails to absorb volume during a downturn and the cascade continues; chasing longs or using high leverage could easily leave you trapped.
Would you wait for volatility to subside before considering a low-leverage long, or stay on the sidelines?
Source: BlockBeats
Image 1: Institutional long positions wiped out; HIP takes over nearly $100 million in longs, and ETH faces another wave of selling pressure · Key News
Image source: https://www.theblockbeats.info/flash/376250
Reports say institutional-grade leveraged longs were brutally liquidated, forcing HIP to take over nearly $100 million worth of long positions, leaving the platform with the positions on its books. Liquidations themselves create concentrated selling pressure. After large institutional long positions are wiped out, the market often cuts positions first and considers a rebound later. The platform’s need to take over these positions suggests the order book lacks the depth to absorb the selling pressure automatically, so short-term buying support is likely to be strained. The event is bearish in the short term and is a classic signal of deleveraging during a downturn.
For holders and traders, keep an eye on three things: whether funding rates turn negative, whether open interest (OI) continues to decline, and whether spot buying can genuinely absorb volume during a downturn. If a cascade of liquidations follows, ETH volatility will increase further, and the pullback could be deeper than expected.
Scenario 1: Funding rates turn negative and OI continues to fall, indicating that leverage is being flushed out and volatility may gradually subside. Scenario 2: Spot buying fails to absorb volume during a downturn and the cascade continues; chasing longs or using high leverage could easily leave you trapped.
Would you wait for volatility to subside before considering a low-leverage long, or stay on the sidelines?
Source: BlockBeats
Image 1: Institutional long positions wiped out; HIP takes over nearly $100 million in longs, and ETH faces another wave of selling pressure · Key News
Image source: https://www.theblockbeats.info/flash/376250
