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The cryptocurrency market is buzzing with excitement as Ethereum (ETH), the second-largest cryptocurrency by market capitalization, experienced a significant surge in value. Speculation surrounding the potential approval of spot ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has driven ETH prices up nearly 18% against the U.S. dollar. This article delves into the reasons behind this surge and its implications for the market.
Market Buzz Lifts Ethereum to $3,691
Intraday Peak and Speculation
On Monday, Ethereum reached an intraday peak of $3,691 per coin. This spike was fueled by rumors circulating on social media and forums about the SEC potentially approving several spot ETH ETFs. A report by Coindesk indicated that three sources claimed exchanges were instructed by the SEC to update their 19b-4 filings “on an accelerated basis.”
Bloomberg Analysts’ Predictions
Adding to the speculation, Bloomberg analysts Eric Balchunas and James Seyffart increased their approval predictions from 25% to 75%. This heightened optimism contributed to the rapid rise in ETH’s value. From $3,140 at 3 p.m. Eastern Time (EDT) on May 20, ETH soared to a high of $3,691 by 6:30 p.m. EDT, marking a 17.96% increase and a gain of $551 in just a few hours.
Ethereum’s Market Performance
Dominance and Market Valuation
As of now, Ethereum’s dominance within the $2.58 trillion cryptocurrency market stands at 17%, with an overall market valuation of $436 billion. ETH commands the third-highest trade volume of the day, with $26.99 billion traded in the last 24 hours.
Trading Pairs and Volume
Today, ETH’s most traded pair is the stablecoin tether (USDT), followed by FDUSD, USDC, BTC, and the Korean won. The Korean won accounts for 1.67% of all ETH swaps in the past day.
Impact on Derivatives Market
Liquidations and Trading Activity
With the rapid rise in Ethereum’s value, the derivatives market witnessed significant liquidations. In the past day, $302.52 million in derivatives positions were liquidated, with ETH shorts leading the way at $102.78 million. According to metrics from coinglass.com, 76,107 traders were liquidated in the past 24 hours, with the largest single liquidation order occurring on HTX with an ETH/USDT trade valued at $3.11 million.
Current Trading Price
As of 8:05 p.m. EDT on Monday, Ethereum is trading at $3,668 per unit, reflecting the market’s positive response to the speculation of SEC approval.
El Salvador Bitcoin Mining Boom
Conclusion
The recent surge in Ethereum’s value highlights the significant impact of market speculation and regulatory developments on cryptocurrency prices. While the approval of spot ether ETFs by the SEC remains uncertain, the current optimism has already led to substantial gains for ETH investors. As the market continues to evolve, keeping an eye on regulatory news and market trends will be crucial for investors and traders alike.
