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Live ETH/USD Chart

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Ethereum (ETH) led the sell-off and even overtook Bitcoin for the first time in months after recording liquidations of about $1 billion.

 

The data analytics platform Alphractal highlighted the 24-hour Liquidations-to-Open Interest ratio as a critical metric in its most recent update, indicating which assets are under the most strain. It was discovered that there hasn’t been a complete deleveraging of Ethereum and Bitcoin (BTC).

The hardest hit, however, have been mid- to lower-cap altcoins, which are in the Top 10 to the Top 700. This has eliminated leveraged positions and increased market volatility.

Ethereum’s recent losses are being watched to see if they mark the start of larger liquidations, since Bitcoin and other large-cap coins may still see more declines.

Alphractal CEO Joao Wedson also revealed that, despite the pessimism, especially in ETH, he believes the recent wave of long liquidations could act as a catalyst to revive market momentum. “ETH has maintained its pace. “.

ETH has adopted the reaccumulation phase that I predicted in August. We went short at the most recent ATH, but the position is still open. Although many traders remain cautious, I still believe that the market will be reenergized for a bullish October by the recent long liquidations.

Ethereum saw a significant inflow of $772 million from institutional investors last week. As investor sentiment improves, such activity might offer vital support for its price. The spike coincided with the long-awaited rate cut by the US Federal Reserve, which at first raised trepidation but later encouraged renewed trust in digital assets.

Ted Pillows, a cryptocurrency analyst, forecast that Ethereum will eventually rise above $10,000 this cycle, but not before a major correction occurs. Pillows cautioned in his most recent update on X that the market is presently experiencing that pullback and that ETH may fall as low as $3,600 to $3,800 before reaching a bottom.