The second largest cryptocurrency by market capitalization is facing a critical period in its existence as the decisive month draws closer. Meanwhile, the Ether futures track has slumped further by losing $230 million over the past 24 hours.
Ethereum Prices Slid Further
Ahead of the September schedule date for Ethereum’s Merge, the price of the largest altcoin has spiked significantly. Accordingly, the Merge occurs when Ethereum’s consensus layer has been deployed and connected to other layers on the Beacon Chain.
It is worth noting that Beacon Chain is the name given to the new Proof-of-Stake (PoS) blockchain of the Ethereum network.
However, as the countdown to the proposed Merge date became closer, ETH struggled to maintain its price in the meantime. As a result, $137 million and $93 million in short- and long-term investment funds were liquidated.
For emphasis, when liquidation occurs, an exchange has halted a trader’s advantage position because of some loss in trading margin.
For this to happen, a trader must first be unable to satisfy the margin requirement for a margin position. The trader does not have the funds needed to maintain the trade flow.
The only option is for a trader to have enough funds to continue trading when in a leveraged position.
Ethereum Experienced A Price Surge
Over the past 24 hours, the price of the largest altcoin has increased by 30%, following a run of positive performance in the market. Additionally, Ethereum is trading at roughly $1,500, one month high after coming out of the $1,000 price range.
Furthermore, the price action shows a high chance of a price surge if the current buying pressure is still active. There is also a support zone in the $1,350 price range.
According to CoinGlase data, Ethereum’s performance last Thursday, despite its upward trend above $1,000, has led to a significant loss in short liquidation. ETH recorded a $337 million loss after the sudden surge last week.
Coincidentally, more than $174 million in short-term assets were also liquidated on Saturday. The trend continued on Sunday with $33 million and on Monday with $125 million.
However, the Saturday loss was the highest figure recorded on Ether Futures in the last few weeks. It is not just short futures that the market liquidated, as long futures also took a hit, with more than $194 million lost so far.
Furthermore, the past 24 hours also show some liquidation suffered by other crypto exchanges amid the market volatility. FTX recorded more than $177 million, the most liquidation among exchanges.
OKX shed $85 million for its part, and Binance made $10 million in liquidation.
For over three months, most top-performing cryptocurrencies have steadily declined in value after a major crash in the price of digital assets.
The impact of the broader crypto market is telling on the performance of most tokens and exchanges. A market boom would pause the industry’s decline for the time being as the bloodbath drives the market to the brink.