$ETH A $5.28 million short position was liquidated during this bout of volatility in perpetual contracts.
How did this figure come about?
The liquidation of a long position means a leveraged position betting on rising prices is forcibly closed, usually when prices fall. A short position gets liquidated in the opposite scenario, most often when prices rise.
Prices where liquidations cluster are often treated afterward as reference points for short-term support or resistance, but whether they actually hold depends on subsequent trading activity.
The same reading can mean very different things in different market conditions, so don't apply a single rule mechanically.
#ETH
How did this figure come about?
The liquidation of a long position means a leveraged position betting on rising prices is forcibly closed, usually when prices fall. A short position gets liquidated in the opposite scenario, most often when prices rise.
Prices where liquidations cluster are often treated afterward as reference points for short-term support or resistance, but whether they actually hold depends on subsequent trading activity.
The same reading can mean very different things in different market conditions, so don't apply a single rule mechanically.
#ETH