The cryptocurrency market experienced a significant event on Monday as the Ethereum price took a sharp downturn. This sudden drop was reportedly triggered by the Ethereum Foundation’s decision to sell coins, leading to a series of liquidation events that resulted in substantial losses for ETH traders. Within a day, on Tuesday, October 10, the Ethereum liquidation volumes skyrocketed, crossing the $32 million mark. Long traders bore the brunt of these losses, with data from Coinglass indicating that 87.61% of all ETH liquidation volumes originated from long positions. Out of the total liquidation volumes recorded, $29.56 million was attributed to long positions, whereas short positions accounted for merely $2.91 million. This disparity clearly highlights the extent of the losses suffered by long traders in the wake of the Ethereum price crash.
The Ethereum network achieved yet another milestone during this 24-hour period. It witnessed the largest single liquidation event, which took place on the Binance crypto exchange, involving the ETHBUSD pair. The liquidated value of this trade amounted to a staggering $4.53 million. The sheer volume of liquidations on the Ethereum network also surpassed that of Bitcoin, which is often the leader in such events. In the same timeframe, Bitcoin liquidation volumes totaled $19.28 million, while Ethereum soared ahead with $32.48 million. Nonetheless, like Ethereum, the majority of Bitcoin’s liquidation volumes emerged from long traders’ positions.
Although the liquidation volumes over the last day did not reach the year’s highest levels, they still hold great significance in the cryptocurrency market. As per CoinGlass’s data at the time of writing, a total of 20,525 crypto traders had been liquidated, suffering losses amounting to $56.42 million. Among these figures, long traders accounted for $44.9 million in losses, while short traders endured losses of $11.48 million. Apart from Bitcoin and Ethereum, other notable assets experienced substantial volumes of liquidation as well. Bitcoin Cash (BCH) recorded $3.59 million, XRP saw $2.77 million, and Solana (SOL) registered $2.75 million in liquidation volumes. Among the cryptocurrency exchanges, Binance claimed the largest share with volumes reaching $24.86 million, followed by OKX with $17.16 million. The remaining top five exchanges in terms of liquidation volumes were ByBit ($6.90 million), Huobi ($5.8 million), and CoinEx ($1.05 million).
If the market witnesses any further significant price swings similar to what transpired on Monday, it is highly likely that liquidation volumes will continue to rise. The only scenario that would keep these volumes low is if the assets in the market remain tightly range-bound, avoiding sudden and drastic fluctuations. However, given the nature of the cryptocurrency market and its inherent volatility, such events are not uncommon.
The recent Ethereum price crash triggered a series of liquidations that decimated the portfolios of many traders. The massive losses endured by long traders serve as a reminder of the risks and volatility associated with the cryptocurrency market. As the market continues to evolve, traders must remain cautious and vigilant to protect their investments from unforeseen price movements and high liquidation volumes.