The broader cryptocurrency sector is now aiming to reclaim the R15.8 trillion valuation. Following a big drop early in June, altcoins led a strong recovery, led by Ethereum (ETH).
The weekly ETH price is up more than 13% as the world’s second-largest cryptocurrency finds strong support at its 200-week moving average of R19K. At the time of writing, ETH is trading 1.2 % down at R19.3K, with a market worth of R2.3 trillion.
The ETH price rise comes amid significant short liquidations in the world’s second-largest crypto. According to CoinGlass statistics, more than R954 million in short liquidations occurred last Friday.
Genesis Trading’s Ainsley To, Gordon Grant, and Noelle Acheson wrote in a client note:
A major options expiration on Friday had been watched as a potential source of volatility. However, “short risk cleared surprisingly efficiently” for Ether amid “perhaps unexpected stability”.
Following a robust comeback last week, the world’s second-largest cryptocurrency has begun to show signs of profit-taking. Santiment, an on-chain data supplier, reported:
Ethereum is having a good weekend, as the price of the #2 market cap asset is currently up +30% in the last week. There appears to be a lot of profit-taking on this mid-sized rise, and the lack of whale activity suggests it isn’t coming from them.
ETH short positions have been declining while long positions have been increasing in the midst of the BTC price fall since the beginning of May. Crypto analyst Colin Wu explains, citing Datamish data:
Bitfinex’s current ETH short position is 19,132.4 pieces. Since May 9, Bitfinex ETH short positions have continued to fall, with a total loss of 243,000 ETH; long positions have increased, with a total gain of 245,000 ETH.
Ethereum has been on a steep decline since the beginning of the year and is still down more than 60% year to date.