Tuesday's Ethereum trading session in the derivatives market was a bright indication of whether the order book could be balanced quickly. According to Coinglas, the $2.87 million ETH position was settled over an hour, with almost 99% of that number being long.
The long liquidation of fresh data is $2.82 million, indicating a one-time liquidation compared to just $48,160. This is a 5,855% imbalance, and this move stands out among other major cryptocurrencies.
This skew coincided with visible spikes on the 1 minute price chart. The ETH fell to around $4,328 before recovering quickly. Still, the reduction is sufficient to cause a flood of margin calls, primarily to its advantages.
Ironically, the subsequent rebounds pushed back prices above $4,350 per ETH within minutes.
Overall, the crypto market has seen more balanced photos, with Bitcoin recording a total liquidation of around $511,000 and Solana $537,000. Over the course of 24 hours, liquidation reached $341.46 million, $139.91 million, $201.55 million, and $201.55 million in shorts and longs.
Ethereum (ETH) price reaction
Ethereum's spot price remained stable at around $4,353 at press. The main message behind this event shows how quickly leverage can thaw during small price changes, even when the overall trend appears solid.
In the case of ETH, this was more like a localized reset than a change of direction, but for someone, I lost a significant portion of my deposit.
