Ethereum Surges 17% in 24 Hours, Promising Market Frenzy
Recently, Ethereum experienced a remarkable surge of 17% within just 24 hours, skyrocketing to $3,645 and sparking excitement in the cryptocurrency market.
This surge triggered significant liquidations, with Ethereum leading the way, totaling $114.47 million. Long positions contributed $29.98 million, while short positions accounted for a substantial $84.50 million, showcasing the asset’s volatility and dominance in the market.
On a specific day, ETH reached an intraday peak of $3,691 per coin, while data from Santiment indicates that ETH’s trading volume hit $37 billion, its highest since March 5.
ETH Rally Driven by Prospects of an ETF Launch
Most notably, Ethereum’s recent rally to a two-month high was greatly influenced by analysts at Bloomberg increasing the likelihood of a successful launch of an Ethereum Exchange Traded Fund (ETF).
In a post on X (formerly Twitter), Eric Balchunas, a senior analyst at Bloomberg, raised the odds of ETF approval from 25% to 75%, buoying investor confidence.
Reports emerged that the U.S. Securities and Exchange Commission (SEC) requested aspiring ETH ETF applicants to update their 19b-4 filings, further fueling speculation and market optimism.
Increased Trading Activity Signals Strength
The aggregated open interest for ether futures on centralized exchanges has soared to a record $14 billion, signaling heightened trading activity and interest around Ethereum.
Correlating with this surge, ETH’s price soared to $3,812, marking a 22% increase in just 24 hours. The spike in open interest is directly linked to recent liquidations as more traders engage in future positions, particularly on the bullish side.
The rapid price movement sparked liquidations of short positions, escalating the upward price momentum and underscoring the intense volatility and stakes in Ethereum trading.
Growing Social Activity and Analyst Forecasts Boost Sentiment
On-chain data reveals a notable increase in whale activity, with 1,393 transactions worth over $1 million executed on a specific day. Similarly, transactions above $100,000 totaled 11,827, a peak not seen since a recent date.
Ethereum’s surge also drove up its social activity, with its social dominance reaching 17.21%, the highest since a prior date. Analyst Geoff Kendrick from Standard Chartered anticipates the approval of the ETH SPOT ETF this week, projecting potential inflows of $15 billion to $45 billion in the first year.
Market participants perceive the approval of an ether ETF as a bullish development, expected to attract institutional capital and pave the way for significant market growth.
Forecast for ETH’s Future
As of now, Ethereum is trading at $3802, reflecting a substantial 21% price surge over the past 24 hours.
The surge in trading activity has triggered increased liquidations, notable whale movements, and elevated social discussions, contributing to the overall market enthusiasm and speculation regarding future regulatory approvals and market trends.
Hot Take: Embracing Opportunities and Shaping the Future
Explore the vibrant world of Ethereum and the crypto market, embracing opportunities for growth and innovation. Stay informed, stay engaged, and capitalize on the exciting developments unfolding in the cryptocurrency sphere.
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