In recent weeks, the crypto market has been generally choppy. However, Ethereum continues to underperform relative to Bitcoin and other assets of its caliber.
For context, Bitcoin has gained slightly, while Solana has surged 5% in the past day. Meanwhile, Ethereum is down 2.38% in the same timeframe, the steepest drop among the coins in the top ten of the crypto ranking by market cap.
Ethereum’s inherent price weakness is also evident in the ETH/BTC chart, which has trended southwards since June’s highs. Hypes from the approval of the Ethereum spot exchange-traded fund pushed Ether over $3,800 per coin and its value against Bitcoin to 0.05710.
However, Ethereum has fallen 33.5% since then, reaching an over 3-year low against Bitcoin. The second-largest crypto asset by market cap trades at $2,551 and 0.3796 BTC.
Ethereum Spikes Liquidation Heatmap
Meanwhile, bulls have had their fair share of disappointment betting on higher prices for Ethereum. The asset’s persistent downtrend has liquidated a substantial number of positions in the past 24 hours.
Data shows that almost a third of crypto liquidations in the past day have been Ether traders. Over $77.28 million worth of Ethereum positions have been liquidated, with $61.54 million attributable to long traders.
Notably, this is the highest liquidation from a single asset in the past 24 hours, closing more trading positions than Bitcoin and Solana. The duo has liquidated open trades worth $58.27 million and $10.31 million, respectively.
Analysis Shows Ethereum’s Next Move
Following an earlier assertion from Bitwise’s CIO Matt Hougan, a notable analysis shows that Ethereum’s storms may not yet be over. For instance, data from IntoTheBlock suggests that the path of least resistance for Ether may be downward, considering the congested supply zone upwards.
The data shows that Ethereum faces tough resistance around the $2,545 to $2,621 region, where almost 3.2 million addresses bought the coin. As a result, the altcoin king may face intense selling pressure at the price zone.
IntoTheBlock IOMAP Data
However, CryptoQuant’s analyst ShayanBTC warns of a possible short squeeze. In a post, the market speculator stated that the estimated leverage ratio shows a growing trend of super-saturated, over-leveraged short trades on Ethereum.
As a result, ShayanBTC noted that Ethereum may spike in price to shake off the overheated short trades. The analyst targets a surge to the resistance at the 100D moving average around $2,700, which would substantially spike short liquidation.
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