EthereumAfter dipping below the $1,000 mark earlier this month, it has managed to recover steadily as traders rush to stock up on ETH at lower levels.
Ethereum is trading at $1,225, up about 27% from the $897 touched earlier this month. A series of liquidations from investors with large wallets led to the release of large volumes of tokens and, as a result, a massive price drop.
Koinfinans.com As we reported earlier, however, the drop below $1,000 seems to have also attracted ‘crypto hunters’ who expect the token to rise significantly in value once the blockchain moves to proof-of-stake. In addition, with the liquidation of over-leveraged positions, it also observed a decrease on the selling pressure side.
Data from Coinglass also revealed that the pace of Ethereum liquidations, which skyrocketed at the start of the month, has drastically dropped over the past week.
Ethereum Balance on Exchanges Continues to Decrease
Blockchain analytics firm Into The BlockData from Ethereum revealed that the balance of Ethereum on centralized exchanges has dropped. This trend reflects traders accumulating tokens by moving the token off the stock market, reducing its active supply.
According to Into The Block, a total of 183.2 thousand ETH (roughly $223 million) has been withdrawn from centralized exchanges in the past 30 days.
However, given that macroeconomic factors are largely detrimental to the crypto markets, traders remain wary of further price drops.
Ethereum, which is a particularly large shareholder Three Arrows Capitalcontinues to be vulnerable to further liquidation after . The fund may be forced to liquidate most of its holdings to pay back its creditors.
Ethereum, which is also sensitive about The Merge, ‘merge’, had a negative impact while deploying the merge on a testnet. The focus is now on a deployment on the Sepolia testnet in early July.
If all goes well, developments could help Ethereum price recover further. The world’s largest altcoin is trading down over 60% so far in 2022.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.