Analysis: ETH's decline in early July caused over $300 million in long orders to be liquidated, and investors are less likely to sell in the short term
According to Mars Finance, the price of Ethereum fell 18% between July 1 and July 8, falling to a low of $2,826, and has now rebounded to around $3,070. Investors' disappointment is understandable, as $313 million of leveraged long positions were liquidated during this period. Although the current price of Ethereum is still below the previous support level of $3,400, on-chain and derivative indicators show that traders are gradually regaining confidence. Data disclosed by on-chain analyst Leon Waidmann showed that 40% of the ETH supply is locked in pledges and DApps, while the supply of exchanges has decreased in the past month, and the number of ETH on exchanges has dropped from 13.34 million to 12.21 million. The reduction in the number of tokens that can be traded immediately means that investors are less likely to sell in the short term.