Over $177 million in Ethereum long positions were liquidated on October 8, the largest long squeeze since early June. Traders are rebuilding bullish bets since, but falling exchange reserves and rising stablecoin supply offer some support while liquidation risk remains.
Over $177 million in ETH long positions were liquidated on October 8, according to CoinGlass data, marking the largest long squeeze since early June. Yet bullish positioning is returning to the derivatives market.
Lookonchain highlighted a trader with a reported 100% win rate and $9.26 million in total profits who is back in action. After the dip, the trader opened a 20x leveraged long position on 12,000 ETH worth $29.88 million, now sitting on an unrealized profit of $626,000.
Long positioning builds again
Bitfinex whales' ETH long positions are rising. The Ethereum Long/Short Ratio also crossed above 1 for the first time after three days of negative readings, which points to a shift toward bullish positioning.
However, if too many traders crowd into long positions, another sharp move lower could trigger a fresh wave of liquidations. ETH is down 8% this week, and the price could move toward $2.1k if support breaks.
Altcoin rotation and falling exchange reserves
The weakness may not be ETH-specific. ETH is down almost 8% in the week, while Solana has corrected by over 9%. Bitcoin dominance has climbed back above 60%, putting pressure on altcoins.
Meanwhile, Binance's ETH reserves have dropped from nearly 4 million to below 3.5 million, a 6-month low. That may add upward pressure on the price if Bitcoin dominance fails to rise and capital rotates back into altcoins.
Liquidity on the network also remains strong. According to Token Terminal, Ethereum added $243.4 million in stablecoin market cap over the last seven days, leading all networks. If capital keeps flowing into ETH, a breakout in the ETH/BTC pair could serve as the next catalyst for upside.
Source: AMBCrypto
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