USD 100 million traders were liquidated by Ethereum’s rise

The increase in the price of Ether (ETH), the Ethereum cryptocurrency, above 3,000 dollars, triggered mass liquidations for 163 million dollars in leverage trailers positions.

Those operators with short positions that expected a fall in value and did not have their stop-to-ally, They were out of the market after this upward movement.

The latest liquidations in the Ethereum market per hour can be verified below, detected by the Coinglass explorer.

The bearish traders, confident in a price setback, opened short positions using leverage, a mechanism that allows to operate with capital borrowed to amplify exposure to the market.

However, The promotion of ETH made these positions lose value abruptly, forcing automatic closures. As indicated by cryptopedic cryptopedics, liquidations occur when exchanges close positions leverage by margin insufficiency, since losses exceed the funds available to keep them open.

This phenomenon would be generated by a ‘Short Squeeze’, an event in which the price increase forces traders with short positions to close them to avoid further losses, which in turn further drives the ETH value.

In addition, the growing institutional interest and the direct purchases of ETHER for companies that integrate it to their treasury have fed this rally.

On the other hand, the market remains on alert, since a continuation of the upward trend could cause even greater liquidations in the next few hours, intensifying the pressure on the bearish traders.