Ethereum bears are experiencing a tough period with liquidations on the market rising
Ethereum and other smart contract-related chains like Solana and Cardano have been facing large fund inflows since the start of the week. The increased demand for decentralized solutions could be linked to the return of risky trends in financial markets, for example Saniment.
Ethereum bears are losing
After jumping above $3,000, Santiment data feed noticed a spike in the liquidation volume for short orders on the market. The spike above $3,000 put Ethereum bulls in a superior position over bears as it reached a three-week high.
Besides a large volume of liquidation, traders voluntarily withdrew their short orders from the market in order to neutralize their losses.
In addition to breaking the 50-day moving average, Ethereum broke through the descending channel formed in February. Indicators like the Relative Strength Index are also showing an upward tendency on Ethereum as it spikes above 60.
The market is recovering from stagnation
According to open interest indicators, Ethereum and other cryptocurrencies are facing a rally thanks to increased funding from derivatives like futures and options. Previously, U.Today noted that Bitcoin’s funding rate was gradually increasing, allowing Bloomberg analysts to predict future movements in the spot asset.
While Ether still has not broken through any major resistance level, it jumped above the 50-day moving average that remained unbreakable since the first test on the chart on Feb. 9.
At press time, Ethereum is trading at $3,055, successfully holding above the highlighted threshold. The market has yet to notice any major selling pressure, suggesting that the market still feels comfortable pushing various digital assets higher. Ether’s competitors, like Cardano and Solana, are also going through a slight escalation with growth of around 5% in the past few hours.
