Ethereum
Ethereum gains as $20 million in shorts are liquidated
Ethereum, the leading layer-1 smart contract blockchain, has gained 3.2% in the last 24 hours. ETH hit its intraday high of $3,514 earlier today and is currently trading at $3,488. The liquidation of derivatives traders appears to be the key factor in this market recovery. Ethereum Price.
A total of $20.4 million According to derivatives analytics platform Coinglass, the value of ETH shorts liquidated over the past 24 hours far exceeds the $1.87 million of ETH longs liquidated over the same period.
A short sale is a derivative contract that traders use to counter the rise in the price of an asset. And that’s what traders usually think of as going long: the price of an underlying asset is going to rise.
Another key event that market participants are closely watching is the approval of Ethereum spot ETFs in the United States.
The U.S. Securities and Exchange Commission (SEC) has required spot issuers of Ethereum ETFs to submit revised filings by July 8according to Eric Balchunas, senior ETF analyst at Bloomberg.
This implies that spot Ethereum ETFs are expected to begin trading in mid-July. Initially, analysts estimated that Ethereum spot ETFs would be approved by July 2, but that now seems highly unlikely.
SEC Chairman Gary Gensler previously said that Ethereum spot ETFs would be approved at some point during the period. summer. At the Bloomberg Invest Summit, Gensler said the approval process was underway. gently.
In order to attract Institutional investors, some ETF issuers, such as VanEck and Franklin Templeton, have already announced fee waivers for their Ethereum spot funds.
ETH is not the only asset to have seen its price rise. The total cryptocurrency market capitalization increased by 3.6% in the last 24 hours and is approaching the $2.5 trillion brand, according to CoinGecko.
This is likely due to the liquidation of $81 million worth of short positions across all assets over the past 24 hours. This figure is offset by the liquidation of only $17 million worth of long positions over the same period.
LayerZero and Ethereum Name Service were the biggest gainers in the top 100 coins by market cap, as they posted gains of 27% And 24%, respectively. On the other hand, Kaspa was the only coin to suffer a loss of more than 1%. Kaspa experienced a drop in 4% in the last 24 hours.
Edited by Stacy Elliott.