Ethereum surged 17% to $3,645 in 24 hours, and the surge has created excitement in the crypto market.
The rise in Ethereum prices has led to several liquidations, with Ethereum leading the liquidation. Its total value is $114.47 million, including $29.98 million in long positions and $84.50 million in short positions, reflecting the asset's volatility and market share.
On May 21, ETH price rose to $3,691 per coin, with total ETH trading volume reaching $37 billion. This is the highest level since March 5.
Ethereum's recent recovery to a two-month high was heavily influenced by Bloomberg analysts, who raised the chances of a successful Ethereum Exchange Traded Fund (ETF) launch.
In a post on May 20 at X Eric Balsunas A senior Bloomberg analyst raised the ETF's chance of approval from 25% to 75%.
This comes after reports that the US Securities and Exchange Commission (SEC) has asked prospective ETH ETF applicants to update their 19b-4 filings.
Crypto market
After the incident, traders experienced a total liquidation of $340.35 million, including $77.26 million worth of long positions and $263.34 million worth of short positions. Goinglas
Last day, 78,944 traders faced demonetisation. The largest individual settlement occurred on Hubei involving the ETH-USDT pair worth $3.11 million.
At centralized exchanges for the number of futures contracts or options contracts still open, it is valued at $14 billion. This indicates that Ethereum trading activity has increased significantly.
This increase in open volumes has seen ETH price rise 22% over the past 24 hours to $3,812. The increase in various contracts is closely related to the recent liquidation. This is because more traders are opening futures positions. Especially upside down.
The rapid price action liquidated the short position, added upside price momentum and underscored the high stakes and volatility in Ethereum trading.
Increased social activity and analyst predictions
Information on the network reveals that the activity of major bookmakers has increased significantly. 1,393 transactions worth more than $1 million were completed on May 20, the highest number since April 14.
Transactions above $100,000 totaled 11,827, a high not seen since April 15. The recent surge in ETH prices has also led to an increase in social activity. Its social dominance was 17.21%, the highest since February.
Jeff Kendrick Standard Chartered analysts expect the ETH SPOT ETF to be approved this week. This could lead to $15 billion to $45 billion in the first 12 months, which could push the ETH price towards $8,000 by the end of 2024.
Market participants viewed the Ether ETF approval as a positive support event. This opens the door to institutional capital and the Spot Bitcoin ETF, which began trading in January. And BTC has a total of $12 billion in credit, among leading trading companies and government fund holders.
What will happen to ETH next?
At press time, Ethereum is trading at $3802, up 21% in the last 24 hours. Now that amount has been reduced.
An increase in trading activity leads to an increase in cash flows. Important moves by major bookmakers and increased social debate all contribute to overall market excitement and speculation regarding future regulatory approvals and market trends.
Source: Pinbolt
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