Traders saw $182 million in losses on ether-tracked futures products in the last day, according to data from analytics tools Coinglass. Ironically, the figure is $14 million higher than Bitcoin-tracked futures, which usually see higher liquidations in the cryptocurrency market during this kind of period.
Liquidations happen after an exchange vigorously closes a trader’s leveraged position as a safety mechanism. This happens mostly in futures trading.
Of the total $182 million in losses, 87% came from long positions. On the other hand, only $22 million worth of short positions were liquidated. Most liquidations happened on the crypto exchange OKEx. The platform racked up about $79 million in losses, followed by FTX standing at $27.6 million.
Longs are futures positions that speculate on the rising prices of their assets. Meanwhile, shorts are futures trades that bet on plummeting prices.
In early Asian tradings on Friday, Ether lost its $3,300 support level, declining to as low as $3,110. The second-largest cryptocurrency by market value slightly increased again to $3,203. The price plummets followed a market-wide decline and a huge sell-off in the stock market. This occurred after the U.S. Federal Reserve released the minutes of the December meeting that hinted that there will be a tightening of financial policies.
On the other hand, Ether — which failed to stay above the $4,000 price level in December, implies a weakening market at the time.
According to Shaurya Malwa, an analyst for Coindesk’s markets “Among the major sellers in the past two months was the Ethereum Foundation, a nonprofit that oversees development on the Ethereum network. The foundation moved 20,000 ethers, worth over $90 million at the time, from its cold wallet to crypto exchange Kraken in November, which may have contributed to some of the selling pressure in the past two months.”