Ethereum Price Prediction as $210 Million Gets Liquidated in Market Volatility – Where is ETH Heading Now?

cryptonews.com:

Major cryptocurrency prices have tumbled on Friday, amid jitters about the health of crypto bank Silvergate, which has seen a rapid exodus of major customers in the last few days. Bitcoin (BTC) was last trading in the mid-$22,000s, down around 4.5% on the day. Ether (ETH), the token that powers the Ethereum blockchain, was last down around 4.7% on the day and trading in the upper-$1,500s. Total cryptocurrency market capitalization was last around $986 billion, down a little over 4.4% or around $43 billion on the day.

The drop in prices has resulted in a surge in trader liquidations. According to crypto derivatives data analytics website coinglass.com, long positions in the crypto futures market worth over $210 million were closed on the 2nd of March. That’s the highest in nearly one month.

Some analysts said that the release of some of Mt Gox’s bitcoin to victims of the exchange’s hack many years ago may have added to the sell pressure. Either way, Bitcoin is now more than 11% below its recent highs above $25,000, whilst Ethereum is closer to 10% down from its recent highs in the mid-$1,700s. Crypto seems to have been playing catch up with recent downside in US equities as a result of concerns about additional interest rate tightening from the Fed in wake of recent strong data.

In fairness, US stock prices are surging this Friday, which is helping put a floor under crypto prices, but the major indices still remain a long way below recent highs. Macro analysts said traders have become more optimistic on Friday because the Fed hasn’t been giving an indication they want to take interest rates above 5.5%, the level currently priced in by the market. Meanwhile, robust data, including the latest monthly ISM services report,