- ETH was trading at $2,999 at the time of writing.
- Ethereum’s cumulative short interest has increased to more than $800 million.
After Ethereum experienced a price decline on May 7th, [ETH] Liquidation of long positions increased further. As a result, more traders opted for short positions.
As a result of this increase in short selling activity, the price of Ethereum further declined and fell below the $3,000 price range during the May 8th trading session.
Ethereum traders bet on price decline
Analysis of Ethereum exchange clearing map by AMBCrypto coin glass At the time of writing, short positions showed dominance.
24-hour cumulative short-term liquidation leverage rose to over $800 million.
This suggests that traders are increasingly taking short positions, indicating an expectation that ETH price will continue to fall in the short term.
Source: Coin Glass
Further inspection of the map reveals that the cumulative leveraged position over the past 7 days is over $1.7 billion.
The current positioning by traders is not unexpected considering the prevailing trends in the previous trading session.
Ethereum long position feeling the heat
Over the past three days, more long Ethereum positions have been liquidated than short positions.
Thoughts on Coinglass by AMBCrypto According to the liquidation chart, longs from May 6th to May 7th exceeded $78 million.
Conversely, short-term liquidations amounted to approximately $18.3 million during the same period.
Source: Coin Glass
This trend continues at the time of writing, with long liquidations exceeding $7 million, while short liquidations were approximately $1.6 million.
read ethereum [ETH] Price prediction for 2024-2025
ETH goes deeper
AMBCrypto’s examination of Ethereum’s daily time frame price trend reveals a notable three-day decline.
At the time of writing, it was trading around $2,999, down less than 1%, and the price movement showed some volatility, as shown by Bollinger Bands.
This decline further entrenches ETH in a bearish trend, with a relative strength index (RSI) of 40, indicating strong bearish sentiment.
Source: TradingView
