The general crypto market is currently looking to reclaim its position. It might get back to its $1 trillion overall capitalizations real soon. This possible development followed a strong correction that took place early in the month of June.
A Sudden Price Action
Altcoins, led by Ethereum, were seen to have staged a solid rebound. Ethereum got solid support at the 200-period weekly moving average to reach $1,200. The token has risen above 13% on the week’s chart.
At the time of this report, Ethereum trades at 1.2% lower at $1,219. Its market capitalization is currently at $148 billion.
The price of Ethereum got to rebound despite pockets of liquidation. The network saw sizable funds taken away from it while the downturn continued.
Over $60 million in short liquidations were granted on Friday alone. This is according to reports published by CoinClass.
Genesis Trading’s analysts, Gordon Grant, Ainsley To, and Noelle Acheson wrote a clients’ note. Therein, they reported that a significant options expiration took place on Friday. They said it is been watched as a possible point for volatility to begin.
Nevertheless, they said short risks were surprisingly efficiently cleared for Ethereum. This came in the midst of unexpected stability.
Profit Taking on Ethereum
There are indications that there was some profit-taking for Ethereum. This follows the strong rebound seen around the second-largest asset last week.
Sentiment reported that Ethereum is benefitting from a good weekend increase. It said the world’s number 2 crypto asset got its price up by over 30%. This happened just within one week.
Sentiment reported further that it looks like there is some profit-taking going on. However, it does not appear to be coming from whales as their activities are low.
Bitcoin has been correcting since early May. Ethereum’s short positions have been reducing steadily while the long position increased continuously.
A crypto analyst, Colin Wu, explained further with reports published by Datamish. He said that the Bitfinex Ethereum short position is presently at 19,132.4 pieces. The Bitfinex Ethereum short positions have been declining since the 9th of May.
Wu said the cumulative decrease of the position stands at 243,000 Ether. Long positions, on the other hand, have been increasing. He said that the cumulative increase stands at 245,000 Ether.
Ethereum has been going through a major slide since the year began. It is still trading at 60% down on a year-to-date basis.
The long-standing macroeconomic effect due to global events keeps exerting pressure on the market. Russia’s retaliation over Western sanctions has taken energy costs to higher levels. COVID cases in China are hampering the global supply chain network.
One should not also be oblivious of the political impasse in the United Kingdom. The crypto bloodbath has resulted in a mass loss of jobs too.