Key Points
- Ethereum experiences a significant price increase leading to a record inflow volume and substantial short liquidations.
- Speculations rise about the potential approval of an Ethereum-based financial product.
Ethereum recently witnessed a substantial price surge, leading to a high volume of short liquidations and a record inflow volume.
Record Inflows and Short Liquidations
This development has sparked speculation that institutions may be gearing up for the possible approval of an Ethereum-based financial product. A recent analysis showed that traders have capitalized on the recent price rise.
On May 21, around 627,770 ETH, valued at over $2.3 billion, flowed into exchanges, marking the second-largest inflow volume in over a year. The largest inflow occurred in March when 648,000 ETH, also worth about $2.3 billion, were transferred.
Positive Netflow and Liquidation Surge
These substantial inflows have led to a positive Netflow for Ethereum over the past few days, indicating that more ETH is entering exchanges than leaving. The recent Ethereum price increase has also caused a spike in liquidation volume.
On May 20, approximately 20,558 ETH, valued at over $75.2 million, were liquidated, marking the second-highest short liquidation volume in over a year. This trend continued on May 21, with over 11,600 ETH worth around $44 million being liquidated.
There is growing speculation about the imminent approval of an Ethereum ETF. Some analysts believe that institutions are already preparing for it.
Ethereum surged to approximately $3,661 following a 19% increase on May 20. This upward trend continued on May 21, with ETH reaching around $3,789 after a 3.50% increase, hitting a price zone last seen in March. At the time of writing, Ethereum was trading at about $3,749, reflecting a decline of just over 1%.
