Earlier this week, Ethereum and Bitcoin experienced a massive surge that made them look like they were set to reach a new all-time high.
However, the two, especially Ethereum, immediately had a price reversal, which was catastrophic for long traders.
Apparently, Ethereum liquidation levels were so steep that more than $55 million was lost within 24 hours.
Sentiments Remain Positive Despite Massive Hit
The ETH market sentiments seem optimistic despite the drastic Ethereum price change.
Ethereum’s price dropped from $3,880 to around $3,700, causing many long traders to lose a lot of money. Indeed, the long and short traders have a wide margin difference, as the latter only recorded $16 million worth of liquidations.
Technical indicators such as the short-moving average and the Relative Strength Index (RSI) indicate that Ethereum still has bullish market support.
The price is still above the short-moving average, while the Relative Strength Index stands above 60. ETH's funding rate is another bullish indicator in this scenario.
The funding rate is a technical indicator that shows the cost of borrowing and lending cryptocurrency.
By staying at 0.014% at press time, traders are still bullish on Ethereum.
This is mainly because buyers are still outnumbering sellers, and many expect Ethereum's price to rise.
Investor's Enthusiasm Increases as Open Interest Skyrockets
There's still a massive amount of investor interest in the Ethereum token.
One piece of evidence of this is the Open Interest, which reflects the total number of outstanding futures contracts.
According to data, the total amount of outstanding futures contracts peaked at $17 billion on May 28th.
This was the most enormous number of outstanding futures contracts recorded since 2024 started.
'This recent development primarily indicates that many investors still believe in Ethereum's long-term potential.
Many cryptocurrency experts think that even though the price of ETH has dropped significantly, it may soon begin to recover.
One of these experts is Michael van de Poppe, a well-known crypto analyst with over 700k followers.
He recently posted some charts and told his followers that he thinks Ethereum is poised to start moving up after a few more small decreases.
$ETH has likely flipped the trend.
— Michaël van de Poppe (@CryptoMichNL) May 31, 2024
I'm looking at a case where we retest the 0.05 region and start turning upwards.
The final dips. pic.twitter.com/GpnQmor3KA
Current Ethereum Market Performance
At press time, Ethereum's price was $3,863, although the second most valuable cryptocurrency has continued to fluctuate between $3,800 and $3,700.
Moreover, there seems to be a slight increase in the past 24 hours at around 1.5%.
Furthermore, it has retained its weekly increase, which saw the price surge to over $3,900.
There's over a 1% increase in the weekly chart and a more impressive gain of over 25% in the monthly chart.
Other metrics, such as the market cap and trading volume, also show good numbers.
At the time of writing, the market valuation of Ethereum was over $453 billion.
On the other hand, the trading volume indicates traders splashed over $15 billion on the cryptocurrency within the past 24 hours.