- Amidst rising tensions from the middle east, Ethereum investors recorded $98 million in liquidations.
- Ethereum Funding rate remains positive, signaling a higher demand for long positions.
- K33 Analyst David Zimmerman, highlights possibilities for ETH.
The cryptocurrency market has felt the impact of rising tensions in the Middle East. Market volatility spiked, triggering over $500 million in crypto liquidations.
Altcoin traders, including Ethereum traders, were hit hard, as the market saw significant liquidations on Monday. According to data from crypto data analysis platform Coinglass, ETH long traders saw a substantive $96 million in liquidations on Monday; this marked the highest single-day liquidations in over 57 days.
Cryptocurrency investors buy long positions expecting the crypto asset to rise in value. To capitalize on this upward movement, traders profit by selling that cryptocurrency at a higher price.
Despite the massive losses for Ethereum traders, a notable network signal suggests a continued bullish uptrend for Ethereum ETFs.
Read also: ETH Dump: Users Panic As Whale Sends 90K ETH to Binance in 24 Hours
In late September, Ethereum’s funding rate spiked, further signaling optimism from market participants. Currently, the asset’s funding rate remains positive. Positive funding rates have historically indicated stronger demand for long positions. Data from Coinglass shows that Ethereum’s funding rate is now at 0.0052%, reflecting positive sentiment from ETF futures traders.
Market Analyst: Positive Inflows Could Help ETH Recover Losses
According to BlockWorks, market analyst David Zimmerman, has revealed that more positive inflows could be beneficial for ETH to shake off some of the 33% year-to-date losses. At the time of reporting, leading cryptocurrencies are struggling to shake off daily losses. Ethereum is not exempt from the list, its market cap down by 7%.
Having made a slow recovery from the previous day, Ether trades slightly above its 24-hour low of $2,415, at a press time price of $2,449.
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