The crypto space has seen the majority of applause during UK trading hours and anguish during Asian trading hours. Ethereum has been one of the dominant altcoins, which seem to be continuing the prolonged trend of losing its steam mainly when the US and UK are asleep. Wherefore, the star altcoin has forfeited most futures liquidations during early Asian trading hours on Tuesday.
Crypto traders from the Asian region are witnessing Ethereum ebbing up towards the murk. As a consequence of escalation in the new Covid variant cases, there appear to be rising concerns to impose lockdown. China is the biggest nation at the beginning of the supply chain, it has proposed to follow an aggressive zero Covid policy. However, the guidelines issued by the country are likely to threaten the global supply chain. Thus arousing traders to withdraw their assets.
Ethereum Liquidation Peaks!
Ethereum’s price has been dreary over the past two months with no significant price action. However, there appears to be a rise in the number of liquidations each passing day. As per the coinglass analytics, the asset has experienced liquidations of a whopping $14.18 million in 24 hours. Meanwhile, over $12.5 million USD in futures was liquidated during the early Asian trading hours of the week.
The statistics from the Santiment reported the same, where Ethereum’s average 30-day traders return are still down by 3.3% over the month. The 30-day MVRV stats evaluate that the position to enter the slot is derisking and there are potential signs of price action. However, the asset has been hovering under the same region since October. What would be the probable reasons?
- Insights of IntotheBlock point out depreciation of the network growth. As traders just use ETH pairs to trade their assets, it hasn’t had much impact on price action in recent days. Whilst its network growth is 0.46% bearish, large transactions are bearish with 3.55% negative growth.
- Recently, the network has also experienced zero traffic due to a dearth of transaction volume over the network. As a whole, the biggest challenge for the network is network congestion and higher gas fees.
- As per Defillama, Total Value Locked on Ethereum blockchain has experienced a slight downfall over the past couple of months plummeting below $150 billion in the last week. At the same time, Terra has managed to take over Binance smart chain in terms of TVL, ranking beneath Ethereum.
Collectively, Ethereum blockchain has been neutral and appears to continue the same with no network growth and frequent delays to the merger. However, the asset may get stronger momentum once it rolls out solid zk rollups and fastens its merger to PoS in the upcoming days. ETH price would hit $5k if it takes serious steps toward ongoing glitches.