The price of Ethereum (ETH) has risen another 5% today, reaching a new all-time high of $4150. At the time of writing, ETH was trading 4.6% higher at $4102, with a market capitalization of $477 billion. A massive amount of short positions have been liquidated across exchanges as Ethereum soars past $4000.
$15 Million In Short Positions Liquidated
Since the beginning of the year, Ethereum has been on an unstoppable rise. ETH has gained more than 450 percent year to date at its current price. Ethereum has gained over 30% in the last week, reaching new all-time highs on a daily basis.
Over $15 million in ETH short positions is liquidated through derivative exchanges, according to CryptoQuant.
$ETH hourly short liquidations across all derivative exchanges hit a year high.
Chart👉 https://t.co/LNDqrWqnbi
(Note: This data only includes ETH/USDT, ETH/USD perpetual futures contracts.) pic.twitter.com/dPWyN0TArD
— CryptoQuant.com (@cryptoquant_com) May 10, 2021
As CoinGape reported, this parabolic ETH price rally comes amid massive interest from U.S. institutional buyers. The Coinbase Premium has been shooting high alone with its price over the last week.
Crypto analyst, Ki Young Ju noted that it would be a bad move to sell Ethereum with the current bull rally. He said:
“Still an insane $ETH Coinbase premium. Selling $ETH now seems not a good idea in the long term. Follow US institutional investors, not against them.“
Q: What’s behind this $ETH parabolic move?
A: US (institutional) investors. https://t.co/4CvbSrF4tt pic.twitter.com/S24Dty4b0i
— Ki Young Ju 주기영 (@ki_young_ju) May 10, 2021
The demand for Ethereum (ETH) derivatives has also increased in recent months. VanEck applied for the first U.S. Ether ETF on Friday, citing increased institutional demand. Moreover, since their launch last month, Canada’s Purpose Ether ETF and the CI Galaxy Ethereum have seen significant inflows.
According to the document:
“The Trust’s investment objective is to reflect the performance of the MVIS® CryptoCompare Ethereum Benchmark Rate less the expenses of the Trust’s operations. In seeking to achieve its investment objective, the Trust will hold Ether (“ETH”) and will value its Shares daily based on the reported MVIS® CryptoCompare Ethereum Benchmark Rate.”
Bitcoin And Ethereum Struggle For Dominance
With today’s new all-time peak, Ethereum’s crypto market dominance has risen to 19.1 percent, while Bitcoin’s has fallen below 44%. Since the March 2020 market crash,
This past week, bitcoin price settled above the key $55,000 pivot level against the US Dollar. The BTC/USD pair formed a base above $55,000 and recently started a fresh increase.
It climbed above the $56,500 resistance zone and settled well above the 100 simple moving average (4-hours). However, the upward move was limited, considering the recent surge in ethereum above $3,500.
Furthermore, in 2021, ETH expanded its lead even further. Though Bitcoin has gained 100% year-to-date, Ethereum has gained 4.5 times as much, with a YTD gain of 450 percent. The Ethereum price rise is also supported by strong fundamentals, such as reduced exchange supply, greater DeFi deposits, increasing ETH 2.0 deposits, lower gas fees, and so on.
The upcoming Ethereum EIP-1559 protocol upgrade will further reduce the ETH supply in circulation. Market analysts are already anticipating that the ETH price will surge to $10,000 by the end of this year. Here are some reasons may hit $10k this year.
Related article | Epic Ethereum Short Squeeze Pushes Rally To New ATH
Featured image from Pixabay, charts from TradingView.
Credit: Source link
