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The cryptocurrency derivatives market has experienced a significant amount of liquidations in the past day following the crash in altcoins. Altcoin longs have been particularly affected, with Ethereum leading in liquidations.

The overall cryptocurrency market has been volatile, with most altcoins seeing drops of over 5%. This volatility has spilled over into the derivatives market, where contracts totaling nearly $429 million have been liquidated in the last 24 hours, according to data from CoinGlass.

Liquidation occurs when a contract is forcibly closed by the platform after accruing significant losses. Long contract holders have borne the brunt of these liquidations, with over $367 million, or more than 85% of the total, involving traders betting on a bullish market outcome.

The steep downward trajectory of the cryptocurrency market as a whole has contributed to the high number of liquidations. Ethereum has emerged as the top liquidated asset, with around $92 million, surpassing Bitcoin in this metric. Other altcoins like Dogecoin and Shiba Inu have also seen significant liquidations due to sharp price drops.

This mass liquidation event is commonly referred to as a “squeeze,” where liquidations cascade like a waterfall, causing higher volatility. Squeezes are not uncommon in the cryptocurrency market due to the high volatility of the assets, but an altcoin-dominated squeeze of this magnitude is rare.

Following the recent plunge, Ethereum’s price has dropped to the $3,400 level. The chart from TradingView shows the downward trend in Ethereum’s price.

In conclusion, the cryptocurrency derivatives market has seen a wave of liquidations in the wake of altcoin crashes, with Ethereum leading the way. Squeezes like these highlight the volatile nature of the cryptocurrency market and the risks associated with trading in derivatives. Investors and traders should exercise caution and closely monitor market trends to make informed decisions.

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