ETH sentiment remains low as the token has lost 50% of its open interest since January.
ETH lost over 5% in the past day on the news of US attacks on Iran. Traders who took on long-side risk on the token got liquidated, including the high-profile position of Machi Big Brother.
ETH erased over $200 in the past few days, dipping to $1,871.58. The news of attacks against Iran crashed the entire crypto market, and ETH held relatively well compared to other altcoins. However, the price moves still caused liquidations.
The ETH fear and greed index is still at around 35 points, indicating ongoing fear. Despite the relatively balanced liquidity, ETH did not go through a short squeeze; instead, it went on to liquidate long positions.
Machi Big Brother still carries a 25X leveraged long position on ETH, valued at over $428K. The liquidation price is at $1,840.37, and for now, the position carries a small unrealized loss.
One of the notorious traders on Hyperliquid, Machi Big Brother, is back to getting liquidated. In the past week, he added $245K in liquidity, opening several long positions. The bullish attitude showed an expectation for a bounce, hence the 25X leverage.
The news turned out painful for Machi Big Brother after several liquidations in a row. On-chain data shows the account only holds $13,580 in available liquidity.
At this point, it is still uncertain whether Machi Big Brother has hedged the bets on ETH to offset the liquidations. However, over the past six months, he has been caught in multiple price crashes, losing millions from Hyperliquid positions.
Unlike the White Whale or James Wynn, Machi Big Brother does not actively comment on trades. He has only reposted information on Ethereum scaling, with fewer comments on price action.
Unlike BTC, ETH does not claim to be a store of value. Its ecosystem depends on development and wide usage, benefiting from stability rather than chaos.
The expectation for ETH is to bounce from the $1,800 level. Currently, ETH is below the accumulation price of whales, as they were unable to support the asset with the new and increased pressures.
At the current price range, ETH is already threatening some of the liquidity on Compound, where liquidity for lending has accrued around $1,891. In the interim, smaller loans on other protocols are also threatened. For now, there is no DeFi contagion, but some lending positions may come under pressure.
ETH has available long positions as low as $1,800, as well as short positions going over $1,950. The market sentiment is standing in the way of a short squeeze.
ETH open interest is down to $10B, deleveraging 50% of positions since January. On all exchanges, ETH has only 24% in short open interest, while Hyperliquid whales carry over 58% in short positions. Despite this, ETH has mostly led to long liquidations with low sentiment.
