Ethereum (ETH) experienced a dramatic 17% rise in less than 24 hours, reaching $3,645, causing a frenzy in the cryptocurrency market.
This surge led to massive liquidations, with Ethereum leading the way. Liquidations totaled $114.47 million, of which $29.98 million was long and $84.5 million short, highlighting the asset's volatility and market power.
On May 21st, ETH soared to an intraday high of $3,691 per coin.According to data from Santimento ETH trading volume totaled $37 billion, the highest since March 5th.
Ethereum’s recent rally to two-month highs was mainly influenced by: bloomberg Analysts are increasing the chances of a successful Ethereum exchange-traded fund (ETF) launch.
In a post on X (formerly Twitter) on May 20th, Eric BalchunasA senior Bloomberg analyst raised the ETF's approval probability from 25% to 75%.
This follows reports that the US Securities and Exchange Commission (SEC) has asked aspiring ETH ETF applicants to update their 19b-4 applications.
According to , the overall cryptocurrency market saw a total liquidation of $340.35 million, with longs of $77.26 million and shorts of $263.34 million. coin glass.
78,944 traders faced liquidations in the past day, with the largest individual liquidation occurring on Huobi, involving $3.11 million worth of the ETH-USDT pair.
Increase in trading activity
The total open interest in Ether futures on centralized exchanges has reached a record high of $14 billion, indicating increased trading activity centered on Ethereum.
This increase in open interest coincides with the price of ETH rising 22% in the past 24 hours, soaring to $3,812. The surge in open interest is closely related to the recent liquidations, as more traders are opening future positions, especially on the bullish side.
The rapid price movements led to the liquidation of short positions, further accelerating the upward momentum of the price, and highlighting the high stakes and volatility in Ethereum trading.
Increase in social activity, analysts predict
On-chain data shows a significant spike in whale activity, with 1,393 transactions worth more than $1 million completed on May 20th, the most since April 14th. Ta.
There were a total of 11,827 transactions over $100,000, the highest since April 15th. ETH's recent surge has also led to an increase in social activity, with social dominance at 17.21%, the highest since February.
In addition to the optimistic view, standard chartered Analyst jeff kendrick We expect the ETH SPOT ETF to be approved this week, which could lead to inflows of $15 billion to $45 billion in the first 12 months, and ETH could rise to $8,000 by the end of 2024. there is.
Market participants view the approval of the Ether ETF as a bullish event that will open the floodgates to institutional investors.
The Spot Bitcoin ETF, which began trading in January, is owned by major trading companies and sovereign wealth funds, with total BTC inflows reaching $12 billion.
What’s next for ETH?
At the time of writing, Ethereum is trading at $3,802, marking a 21% price increase in the past 24 hours.
The surge in trading activity has led to increased liquidations, large-scale whale movements, and heightened public debate, all of which contribute to market-wide excitement and speculation about future regulatory approvals and market trends.
Disclaimer: Content on this site should not be considered investment advice. Investments are speculative. When you invest, your capital is at risk.
