Ethereum has experienced a notable 3.2% increase over the past 24 hours, reaching an intraday high of $3,514 and currently trading at $3,488. This surge follows the liquidation of $20 million worth of Ethereum short contracts, significantly outweighing the $1.87 million in long contracts liquidated during the same period, as reported by derivatives analytics platform Coinglass.
The liquidation of shorts is identified as a key catalyst for the upward movement in Ethereum’s price. This activity underscores the impact of derivative traders covering their positions amid market dynamics.
Meanwhile, market participants are closely monitoring the potential approval of U.S. spot Ethereum ETFs. The U.S. Securities and Exchange Commission (SEC) has requested revised filings from ETF issuers by July 8, signaling a potential mid-July commencement for trading. Initial expectations for ETF approvals by July 2 have been adjusted amidst ongoing regulatory reviews.
SEC Chair Gary Gensler recently indicated a favorable outlook for spot Ethereum ETF approvals this summer, noting a smooth approval process at the Bloomberg Invest Summit. In response, ETF issuers like VanEck and Franklin Templeton have announced fee waivers to attract institutional investors to their spot Ethereum funds.
The broader cryptocurrency market has also seen a 3.6% increase in total market capitalization, nearing the $2.5 trillion mark, driven by widespread liquidations of shorts amounting to $81 million across various assets. Ethereum’s performance mirrors broader market trends, with LayerZero and Ethereum Name Service leading gainers in the top 100 coins by market cap, while Kaspa recorded a modest decline of 4% over the same period.
The recent developments underscore Ethereum’s resilience and the evolving regulatory landscape’s impact on cryptocurrency markets globally. Investors and stakeholders continue to navigate these developments, anticipating further insights from regulatory authorities and market indicators in the coming weeks.