Key Points
- Ethereum (ETH) has surged to a two-month high, following increased odds of a successful ETF launch.
- The surge in price led to the liquidation of several short positions, and a spike in whale activity.
Ethereum (ETH) is currently trading at a two-month high.
The single-day record for short positions liquidated for the coin was set on 20th May, the highest since the start of the year.
Increased Odds for Successful ETF Launch
Ethereum’s rally came after Bloomberg analysts raised the probability of the successful launch of the Ethereum Exchange Traded Fund (ETF).
On 20th May, Eric Balchunas, a senior Bloomberg analyst, increased the approval odds for the Ethereum ETF from 25% to 75%.
This announcement followed reports that the United States Securities and Exchange Commission had asked prospective ETH ETF applicants to update their 19b-4 filings ahead of this week’s deadline.
At the time of writing, Ethereum was trading at $3,648, marking a 17% price increase in the past 24 hours.
The coin’s trading volume has grown by over 200% during the same period due to increased trading activity.
Trading Activity and Whale Movements
Santiment data shows that Ethereum’s trading volume reached $37 billion, its highest since 5th March.
On 20th May, Ethereum’s price briefly exceeded $3700, leading to the liquidation of several short positions in the coin’s futures market.
Coinglass data reveals that the amount of Ethereum’s short liquidations reached a year-to-date high of $81 million on that day.
In contrast, the amount of long positions liquidated on the same day was $26 million.
Ethereum whales have capitalized on the price rally, with on-chain data showing a significant increase in whale activity in the past 24 hours.
As Ethereum’s price neared $3700 on 20th May, the number of Ethereum transactions worth over $1 million also rose.
According to Santiment, 1393 transactions of this size were completed on that day, the highest number since 14th April.
Transactions worth more than $100,000 totalled 11,827 on 20th May, the highest number since 15th April.
The recent attention on Ethereum has led to an increase in its social activity.
At the time of writing, the coin’s social dominance was 2.28, its highest since February.
This means that for every 100 conversations about the top 100 cryptocurrencies, 2.28 are about Ethereum, putting it slightly above average in terms of discussion compared to other major coins.
