The sharp drop in cryptocurrency prices has caused selloffs across the board, with the number of ethereum (ETH) futures contracts forcibly closed by OKX, a cryptocurrency trading platform, hitting a 1-month high, data from Glassnode, a blockchain analytics platform, in Shows on June 10.
SEC Lawsuits Trigger Cryptocurrency Selloffs
Cryptocurrency prices, including ETH and bitcoin (BTC), are lower to write, contributing to an increase in the number of long contracts liquidated.
According to Glassnode, Ethereum futures contracts on OKX have risen substantially on long liquidations, reaching a one-month high of $8,022,567.66. This figure exceeds the previous month’s high of $7,269,559.02 seen a few days ago on June 5, 2023.
This increase in liquidations indicates a higher level of selling pressure in the market, which could amplify the downside momentum.
ethereum state price
The ethereum (ETH) price has seen a drop in recent days, signaling a change in market sentiment.
At the time of writing, Ethereum is trading at $1,738.86, a decrease of 5.61% in the last 24 hours and a drop of 8.64% in the last seven days.
With a circulating supply of 120 million ETH, ethereum’s market cap currently stands at $209,037,139,067, according to CoinGecko.
Ethereum has support around $1,700, with resistance at $1,900.
On the weekly time frame, the RSI value for ethereum is currently at 40. This suggests that there is no significant bias towards buying or selling, and the market may be waiting for further developments before a possible price change.
The RSI value is at 26 on the daily time frame, reflecting a relatively lower value than the weekly time frame. A value of 26 suggests that selling pressure may be stronger in the short term, indicating a potential oversold condition for ETH.
Multiple factors are contributing to the current market downturn, with recent lawsuits against major cryptocurrency exchanges possibly being a trigger.
The Securities and Exchange Commission (SEC) recently filed lawsuits against Binance and Coinbase, two leading cryptocurrency exchanges, raising uncertainty and dampening market sentiment.
Earlier this week, the regulator listed 19 major tokens as examples of securities, including solana (SOL), polygon (MATIC), BNB, and others, when filing its lawsuits against Binance and Coinbase. Subsequently, Robinhood, a trading platform, said it plans to delist some assets, including SOL, cardano (ADA) and MATIC, which the SEC alleged are securities.
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Against that backdrop, investors are becoming more cautious, leading to further selling pressure and negative impacts across the entire crypto market.
