Analysis: The drop in ETH at the beginning of July led to more than 300 million US dollars' worth of long positions being liquidated, making it less likely for investors to sell off in the short term

The price of ethereum fell 18% from July 1 to July 8, dropping to a low of $2826, but has since rebounded to around $3070. It's understandable that investors are disappointed as during this period, leveraged long positions worth $313 million were liquidated. Although the current price of Ethereum is still below the previous support level of $3400, on-chain and derivative indicators show that traders are gradually regaining confidence. Data revealed by on-chain analyst Leon Waidmann shows that 40% of ETH supply is locked in staking and DApps, while exchange supply has decreased over the past month with the number of ETH on exchanges falling from 13.34 million to 12.21 million tokens. The reduction in immediately tradable tokens suggests a smaller likelihood for investors selling off in the short term.