Ethereum (ETH) experienced a dramatic 17% surge within 24 hours, reaching $3,645 and causing a frenzy in the cryptocurrency market.
This surge led to significant liquidations, with Ethereum leading the pack. Liquidations totaled $114.47 million, including $29.98 million in longs and a substantial $84.50 million in shorts, highlighting the asset’s volatility and market dominance.
On May 21, ETH soared to an intraday peak of $3,691 per coin. According to the data from Santiment , ETH’s trading volume has totaled $37 billion, representing its highest since March 5.
Ethereum’s recent rally to a two-month high was largely influenced by Bloomberg analysts increasing the odds of the Ethereum Exchange Traded Fund’s (ETF) successful launch.
In a post on X (formerly Twitter) on May 20, Eric Balchunas, a senior analyst at Bloomberg, raised the approval odds for ETFs from 25% to 75%.
This rise in open interest coincides with ETH’s price surge to $3,812, an 22% increase in the last 24 hours. The spike in open interest is closely related to the recent liquidations, as more traders have opened future positions, particularly on the bullish side.
The rapid price movement triggered liquidations of short positions, further fueling the upward price momentum and underscoring the high stakes and volatility in Ethereum trading.
Increased Social Activity and Analyst Predictions
On-chain data revealed a significant spike in whale activity, with 1,393 transactions worth over $1 million completed on May 20, the highest number since April 14.
Transactions worth above $100,000 totaled 11,827, a peak not seen since April 15. ETH’s recent surge has also led to an increase in its social activity, with its social dominance at 17.21%, its highest since February.
Adding to the optimism, Standard Chartered analyst Geoff Kendrick expects the ETH SPOT ETF to be approved this week, potentially leading to inflows of $15 billion to $45 billion in the first 12 months, which could push ETH to $8,000 by the end of 2024.
Market participants view the approval of an ether ETF as a bullish event, opening the floodgates to institutional capital.
The spot bitcoin ETF, which started trading in January, has racked up $12 billion in total inflows for BTC, with top trading firms and state funds among its holders.
What’s next for ETH
At press time, Ethreum is traded at $3802, recording a 21% price hike in the past 24 hours.
The surge in trading activity has led to increased liquidations, significant whale movements, and heightened social discussions, all contributing to the overall market excitement and speculation about future regulatory approvals and market trends.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
