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Ethereum (ETH) bulls got a taste of fire on June 11th as the altcoin’s derivatives market witnessed a dramatic surge in long liquidations. According to data from Coinglass, this event marked the highest level of long liquidations since May 23rd, signifying a significant correction for traders who bet on rising prices. Related Reading: Shiba Inu Loses 14% In Last 7 Days – Will The Misery Worsen? Crimson Chart: Long Positions Liquidated Overconfident investors piled into long positions, essentially placing a wager that Ethereum’s price would climb. However, the market had other plans. An unexpected price drop sent shivers down the spines of these bulls, triggering a wave of liquidations. As the price dipped below a certain threshold set by the exchange (known as the margin requirement), these positions were forcefully closed to prevent further losses for the unfortunate traders. The result? A collective sigh of relief for some exchanges, but a hefty bill for liquidated bulls, totaling over $60 million on that fateful day. Positive Funding Rate Offers A Glimmer Of Hope While the market correction sent shockwaves through the Ethereum derivatives landscape, a silver lining emerged in the form of a positive Funding Rate. This metric essentially reflects the fees paid by traders holding short positions (betting on a price decline) to those holding long positions. In simpler terms, a positive Funding Rate indicates a stronger demand for long positions, suggesting that even amidst the carnage, some investors remain optimistic about Ethereum’s long-term prospects. This positivity is further bolstered by the fact that ETH’s Funding Rate hasn’t dipped into negative territory since May 3rd. A Temporary Hiccup? The jury’s still out on whether this event represents a fleeting blip or a more concerning trend. While the positive Funding Rate offers a glimmer of hope, the significant drop in derivatives activity paints a different picture. The past 24 hours have seen a worrying decline in both options trading volume (down 50%) and Open Interest (total outstanding contracts, down 2%). This suggests a potential flight from the market, with fewer participants actively trading options contracts or holding open positions. Ether Price Forecast Meanwhile, the current Ethereum price prediction by CoinCodex suggests a 2.46% rise to $3,636 by July 13, 2024. Despite this positive outlook, the market sentiment remains bearish. The Fear & Greed Index stands at 70 (Greed), indicating strong investor interest. Related Reading: Solana Searching For Direction: Will SOL Break Free Or Fall Flat? Over the last 30 days, Ethereum has shown significant volatility, with positive gains on 53% of the days and an overall price fluctuation of 8.63%. While the short-term forecast is optimistic, the mixed signals highlight the need for cautious investment given the current market unpredictability. Featured image from SignatureCare Emergency Center, chart from TradingView