$ETH
1. Liquidation of Longs:
A long position is when traders bet on the price of an asset increasing.
Liquidation occurs when the price drops to a level where the trader’s collateral is no longer sufficient to maintain the position, triggering an automatic closure.
2. Market Implications:
A significant long liquidation can signal increased selling pressure in the market.
It may also indicate that support levels are being broken, leading to bearish sentiment.
3. Traders’ Takeaway:
Be cautious with leverage during high volatility.
Look at liquidation data alongside other indicators (volume, open interest, and market sentiment) to predict market trends.