- Prominent websites provided erroneous data on $660m in Ethereum shorts.
- Ethereum price rose by 6% after the news.
- Recent Ethereum price activity has been driven by its impending switch to proof-of-stake.
More than $660 million in Ethereum short bets were liquidated yesterday as the price of the second-largest cryptocurrency rose by roughly 6%, from $1,804 to $1,910, printing multiple straight green hourly bars on the market.
According to reports, Bitfinex has been the site of the vast bulk of these liquidations. Prices failed to hit $2000 despite large liquidations and were held below $1900, creating quite a significant amount of anxiety about the future price movement.
Oooof, $666M and 368K positions of ETH shorts got smoked today.
3 year ATH according to CryptoQuant. pic.twitter.com/dks2uLNxYV
— Lex Moskovski (@mskvsk) June 6, 2022
A large number of traders established short bets in Ethereum, betting against the currency’s rise, and these positions were immediately liquidated, resulting in large losses. Over the last three years, this is the highest level ever recorded by CryptoQuant. According to another tweet in the thread, Bitfinex had the most liquidated transactions.
Ethereum’s one-day liquidation volume has reached its highest level in three years as a result of the trading on Bitfinex. Nearly $698 million has been liquidated in the last 24 hours, with 99.5% of these short sales.
Paolo Ardoino, the CTO of Bitfinex, replied by sharing the platform’s Ethereum trading data. Another user then commented that a ridiculous number of more than $1 million liquidations were being transmitted on the status WebSocket channel. He stated that he does not have a copy of the data, but from seeing his own feed, he believes these values are consistent with the data transmitted via the Bitfinex feed.
Ardoino then cleared that this is a common misunderstanding. “We publish the data with position id, and the status stream reports that the amount is decreasing. The misunderstanding is the amount is the remaining position size, not the executed order size.”
This week’s crucial Proof-of-Stake (PoS) test may cause Ethereum to solidify its recent gains, when the Ropsten Testnet, one of the most significant testnets on the blockchain, installs a PoS architecture.
Vitalik Buterin, the founder of Ethereum, said that the integration might occur as early as August. It is anticipated that the merger will be positive for Ethereum since it would significantly cut the blockchain’s running expenses and make it more accessible and sustainable.