These days, the cryptocurrency market is looking to recover its $1 trillion value, aided by the slow ascent of bitcoin (BTC) along with Ethereum (ETH).
On the weekly chart, the price of ETH has added more than 8%. It seems that the second largest cryptocurrency by market capitalization is trying to find strong support at its 200-week moving average, i.e. at $1200. At the moment, the price of ETH is fluctuating around $1226, showing a daily loss of 1.5%.
The ETH price is recovering amid significant liquidation of short positions. According to CoinGlass, last Friday there were liquidations of shorts amounting to more than $60 million.
Expiration of large options brought some stabilization to the market, as commented by Santiment specialists:
Etherium is enjoying a good weekend of growth, with the price of the No. 2 asset by market capitalization adding 30% over the past week. Profit taking seems to be taking place on this average bounce, but the low activity of cryptokits indicates that they are not participating in this process.
Against the backdrop of the BTC price correction since early May, short ETH positions have been declining while long positions have been rising. Citing Datamish data, crypto analyst Colin Wu reported the following:
Bitfinex’s current number of ETH short positions is 19,132.4. They have been declining since May 9 with a cumulative decrease of 243,000 ETH, long positions continue to rise with a cumulative increase of 245,000 ETH.