Analysis: The drop in ETH at the beginning of July led to more than 300 million dollars' worth of long positions being liquidated, reducing the likelihood of investors selling off in the short term

ETH fell by 18% from July 1 to July 8, dropping to a low of $2,826 and has since rebounded to around $3,070. It's understandable that investors are disappointed as during this period, leveraged long positions worth $313 million were liquidated. Although the current price is still lower than the previous support level of $3,400, on-chain and derivative indicators show that traders are gradually regaining confidence. On-chain analyst Leon Waidmann revealed data showing that 40% of ETH supply is locked in staking and DApps while exchange supplies have decreased over the past month with the number of ETH on exchanges falling from 13.34 million to 12.21 million tokens available for immediate trading - a decrease which implies less likelihood of short-term selling by investors.