Latest observations on the liquidity of the ETH futures market!
Recently, ETH's price movement taught me a lesson: even if there aren't many short positions waiting to get liquidated in the futures market, the price can still surge just by buying the spot with real money!
Look at the area pointed out by the big arrow on the chart. In the past month, there has been almost no liquidation line for shorts set that high in that region, which can be described as a "short vacuum zone." Yet the price still managed to push through somewhat.
What does this indicate?
This breakout is mainly driven by real spot buyers pushing the price up!
In the short term, just above the current price, there have been quite a few liquidation orders for shorts piled up since early July. So, if the price wants to push up a little more quickly, that area might be the next target.
This stands in stark contrast to BTC. ETH's recent rise is not driven by futures contracts but is instead dominated by real spot demand. In contrast, after BTC liquidated all the shorts that could be liquidated below 123k, its upward momentum has been noticeably weaker than before.
This further proves my point: what can truly sustain an upward trend is always the demand for real spot purchases! This is the strongest bullish force.
I am Xinbi, follow me, supported by a top-tier team, only serving ambitious lunatics.
Pay attention today: ETH PUMP BONK BTC
