In the last 24 hours, the cryptocurrency market experienced $1.42 billion in liquidations within the derivatives sector. Ethereum accounted for $349.17 million, with $274.29 million worth of long positions facing liquidation. The leading altcoin was examining the $1,550 price level that it had previously assessed in the first week of June. The higher timeframe price trend was bearish, and Bitcoin was trading below the $60k support level at the time of writing. This significant price movement was probably influenced by a liquidation cascade. Based on the data, it appears that the selling pressure may increase.
The 7-day moving average of the Ethereum net transfer to/from exchanges metric experienced an upward movement. It had been negative over the past three weeks, indicating a trend of coins exiting exchanges. A shift toward net transfers into exchanges would indicate an increase in the availability of ETH for selling. This could exert additional pressure on the already-stressed price movement. Another metric, the new address momentum, utilises the averages of the monthly [red] and yearly [blue] new addresses to monitor network adoption. Since late April, the monthly average of new addresses has decreased, falling below the yearly average. This indicated a contraction in on-chain activity and decreased adoption rates. Such a change is indicative of weakening market sentiment and falling price trends.
The 7-day moving average of the taker buy-sell ratio in the derivatives market has maintained a positive trend since June 10. However, the price bounce toward $1.8k made last week has swiftly reversed. The data indicated that speculative market participants were prepared to purchase at the bid price. These buyers have also established conditions for a squeeze, similar to the most recent occurrence. In a recent post, an analyst utilised a systematic regime model to illustrate the defensive posture adopted by Ethereum market participants.
Utilising Bitcoin’s derivatives flows alongside the stablecoin flows from centralised exchanges, the assessment revealed a modest 45% probability of a bullish shift for ETH. In particular, the decisive shift toward stablecoin inflows to Binance can serve as a good indicator of returning investor risk appetite, the analyst concluded. Until such a shift, exercising patience may prove to be a more prudent strategy for investors than holding strong bullish or bearish convictions.