Ethereum breaks the structure, causing more than 250 million USD in long-position liquidations as smart money withdraws.
After more than a month of sideways movement, with ETH fluctuating between the support level of 2,350 USD and the resistance of 2,900 USD, prices have officially broken the market structure. On June 21, ETH broke through the lower boundary of this range with a sharp drop of 4.56%. The price hit a nearly 50-day low of 2,215 USD. It is not surprising that over 250 million USD in long positions were liquidated, as highly leveraged investors got caught in a classic 'rug-pull.'
Initially, this event could be seen as a reset of normal leveraged profits. However, on-chain data shows that the situation is not that simple. According to TinTucBitcoin, a structural change may be underway – something that could make ETH's support at 2,000 USD increasingly vulnerable.
Global situation disrupts the market, Ethereum leads the outflow
In less than 72 hours, the cryptocurrency market has lost nearly 3.5% of its total value. This is a clear signal that macro FUD sentiment has been accumulating in the market.
However, it is the event of the United States officially participating in the Middle Eastern conflict that serves as the main catalyst, breaking the entire market structure. Risk sentiment has risen sharply, and capital outflow is significant. Among them, ETH is the most heavily affected, losing 9.16% in the same period, breaking through the 2,215 USD mark. This decline is not only due to a normal leveraged push.
The Coin Years Destroyed (CYD) index of Ethereum has surged, reaching a six-month high. This indicates that older, less-traded coins have unexpectedly become active again. A wave of long-term HODLers exiting positions has unexpectedly increased selling pressure.
Source: Glassnode
However, this time, the chain data is clearer. According to Lookonchain, a whale wallet has liquidated nearly 5,000 ETH before ETH collapsed from the important support area of 2,400 USD. A mid-sized shark also began adjusting the amount of ETH sold right after the price broke through key support levels.
This is certainly not coincidental. These actions clearly reflect a strategy of taking profits or cutting losses to minimize risk or rebalance positions as the market declines. This also reflects an inevitable psychological turning point. Long-term holders (LTHs), who are the pillars of the market, are beginning to show impatience. As smart money withdraws, retail FOMO sentiment is unlikely to last long.
Will the support level of 2,000 USD hold?
Structurally, ETH needs to drop nearly 12% from the current price of 2,272 USD to test the psychological support level of 2,000 USD. However, the recent sharp decline makes this outlook not too far-fetched. The second quarter is ending with instability, as rising geopolitical tensions push market sentiment into a risk-off state. As long as there is no rebound, the market remains vulnerable to emerging new macro FUD.
Position data clearly reflects the downward pressure. A long position of 58.69 million USD around the 2,239 USD area shows that many traders are leaning towards a strongly bearish short position.
Source: Coinglass
If the sentiment continues to be gloomy, it is likely just a matter of time before Ethereum falls below 2,200 USD, opening up the possibility of retesting the 2,000 USD area in the short term.
Source: https://tintucbitcoin.com/ethereum-doi-mat-khung-hoang-2k-giu-duoc/
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