ETH Crashes, Kalut Traders Pull Out!

thecekodok

 "Know the fear, next time the trader has to be ready so that there is no chaos."


After the second largest cryptocurrency Ethereum (ETH) overnight plunged below $1,800, many investors and traders worried about the price drop have rushed to sell their holdings.


As of May 24 yesterday, ETH open interest in crypto derivatives trading totaling $5.2 billion has crossed several digital asset exchanges such as Binance and OKX, of which $4.7 billion is permanent futures while $450 is futures contracts.


As a derivative, open interest positions mean that traders borrow funds from the crypto exchange to trade with larger lot sizes, therefore they need to allocate collateral i.e. margin to finance the trade.



It is well known that open interest in ETH positions recently slipped by 7.3% as the price of the digital asset fell 5% from a high of $1,875 to $1,775.


Currently, ETH derivative positions worth $5.2 billion are mostly on the world's largest crypto exchange Binance followed by $2.1 billion while OKX and Bybit have $1.1 billion and $1 billion respectively.


Meanwhile, most traders are found to be more interested in custodian crypto exchanges when trading ETH derivatives following around $189 million of ETH open positions on dYdX, which is a decentralized exchange (DEX).


While there are traders predicting that the price of BTC has the potential to go higher in the future, as much as $18.7 million of ETH long positions have been liquidated in the last 24 hours for a total of $22.4 million.


As of this writing, the price of ETH has plunged by 2.23% in the last 24 hours with a market cap of $214 billion and is down around 1.96% over the last week.

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