• Voyager has started the process of liquidating its digital assets, which includes 100,000 ETH.
• This could lead to a wave of sell pressure in Ethereum’s market, pushing prices below $1,500.
• Shorts traders might take advantage as bearish expectations continue to mount due to anticipated rate hikes from the Federal Reserve.

Voyager Starts Liquidation Process

Voyager recently filed for bankruptcy after suffering heavy losses and has begun the process of liquidating its digital assets. Initial data reveals that the company holds slightly over 100,000 ETH in addresses which will be sold off to creditors. The estimated value of these ETH holdings is over $150 million.

Ethereum Sell Pressure On The Way?

The impending liquidations may translate into a large amount of sell pressure within the next few days and possibly trigger a deeper bearish move below $1,500. So far bears have managed to push Ethereum’s price down by 12% since February highs to its press time price of $1,527.

Bearish Outlook Strengthens

Bearish expectations have been further strengthened courtesy of expected rate hike increases from Federal Reserve chairman Jerome Powell during a recent Senate hearing. He revealed that they might have to raise rates if they want to combat inflation better.

Leverage Ratio Suggests Short Positions Increase

This could be seen in futures estimated leverage ratio which has improved over the last two weeks as prices dropped. There appears to be healthy demand for short positions judging by the surge in this metric in the past two days alone despite bearish conditions prevailing overall.

Conclusion

Overall it looks like shorts traders will likely take advantage as sell pressure rises from Voyager’s liquidation and rate hikes remain on the horizon. It remains uncertain how much Ethereum’s price will drop but any sharp drops should not come as too much of a surprise given current market conditions