- Bullish Ethereum whales were liquidated due to highly volatile price movements.
- Holders remained unprofitable despite rising prices.
Ethereum [ETH] has seen massive volatility over the past week, causing traders to lose money left and right.
Whales see red
Not only private investors, but also some whales have fallen victim to liquidations in recent days.
According to Lookonchain data, despite previous losses totaling $4.5 million, a whale doubled its ETH position, showing confidence in the asset’s potential, and ultimately lost money.
The investor also took a step that involved withdrawing 8,249 ETH from Binance [BNB]and converts it to Compound [COMP]and borrowing 17.3 million Tether [USDT] of the platform to make the significant bet.
Source: Lookonchain
Other traders were also liquidated. According to Coinglass data, $6.28 million worth of long positions in Ethereum were liquidated within 24 hours.
Despite these setbacks, the growing number of long positions in ETH grew significantly.
This suggested increasing optimism among traders, reflecting bullish sentiment about Ethereum’s future prospects.
Source: Coinglass
Implied volatility for ETH has also surged in recent days, reflecting the increased uncertainty and risk prevalent in the market.
Although a high IV is more bearish in nature and most traders prefer to short during periods of high IV, overall sentiment towards ETH has remained positive.
Source: Het Blok
Looking at the data
Over the past 24 hours, the price of ETH has risen 3.78%, signifying short-term bullish momentum. However, according to AMBCrypto’s analysis of Santiment’s data, network growth around ETH declined.
This indicated that new addresses were losing interest in the ETH token.
While network growth had slowed, indicating a possible slowdown in new user adoption, the increase in speed indicated increased trading activity and liquidity in the market.
Source: Santiment
Read Ethereum [ETH] Price forecast 2024-2025
Despite the price increase, the MVRV ratio for ETH remained negative at the time of writing, indicating that Ethereum holders had yet to make a profit.
This scenario implied a continued ownership pattern among Ethereum investors, potentially supporting further upward momentum for ETH’s price as holders awaited more favorable market conditions.
Source: Santiment