The price of Ethereum (ETH) is up another 5% today, hitting a new all-time high of $ 4,150. At the time of writing, ETH was trading 4.6% higher at $ 4102 with a market cap of $ 477 billion. A tremendous amount of short positions were liquidated across exchanges as Ethereum climbed above $ 4,000.
$ 15 million liquidated in short positions
Ethereum has been on the upswing since the beginning of the year. In the course of the year to date, ETH has won more than 450 percent at its current price. Ethereum has surged over 30% in the past week and hit new all-time highs every day.
Over $ 15 million in ETH short positions are being liquidated via derivatives exchanges, according to CryptoQuant.
The hourly short liquidations of $ ETH on all derivatives exchanges hit an annual high.
(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 is taking place amid massive interest from institutional buyers in the US. The Coinbase Premium has skyrocketed in the last week with its price alone.
Crypto analyst Ki Young Ju noted that selling Ethereum with the current bull rally would be a bad move. He said:
“Still a maniac $ ETH Coinbase bonus. sale $ ETH doesn’t seem like a good idea in the long run. Follow US institutional investors, not against them.“
Q: What is behind this parabolic movement of $ ETH?
A: US (institutional) investors. https://t.co/4CvbSrF4tt pic.twitter.com/S24Dty4b0i
– Ki Young Ju (@ki_young_ju) May 10, 2021
The demand for Ethereum (ETH) derivatives has also increased in recent months. VanEck applied for the first US Ether ETF on Friday, citing increased institutional demand. Additionally, Canada’s Purpose Ether ETF and CI Galaxy Ethereum have seen significant inflows since their launch last month.
According to the document:
“The investment objective of the trust is to reflect the performance of the MVIS® CryptoCompare Ethereum Benchmark Rate less the cost of operating the trust. In order to achieve its investment objective, the Trust will hold Ether (“ETH”) and rate its shares daily based on the reported MVIS® CryptoCompare Ethereum Benchmark Rate. “
Bitcoin and Ethereum are fighting for supremacy
With today’s new all-time high, Ethereum’s dominance in the crypto market has risen to 19.1 percent, while Bitcoin’s has fallen below 44 percent. Since the market crash in March 2020
In the past week, the Bitcoin price leveled off against the US dollar above the important pivot level of USD 55,000. The BTC / USD pair formed a base above $ 55,000 and recently began another spike.
It climbed above the $ 56,500 resistance zone and settled well above the simple moving average of 100 (4 hours). The upside has been limited, however, considering the recent surge in Ethereum above $ 3,500.
In addition, ETH expanded its lead further in 2021. Although Bitcoin is up 100% since the start of the year, Ethereum is up 4.5 times as much, with a YTD gain of 450%. Ethereum’s price hike is also supported by strong fundamentals like reduced stock exchange supply, larger DeFi deposits, increasing ETH 2.0 deposits, lower gas fees, etc.
The upcoming Ethereum EIP-1559 protocol upgrade will further reduce the amount of ETH offerings in circulation. Market analysts already expect the ETH price to rise to $ 10,000 by the end of this year. Here are some reasons that could hit $ 10,000 this year.
The ETH / USD moon bull rally continues. Source: TradingView
Related article | Epic Ethereum Short Squeeze Drives Rally To New ATH
Selected image from Pixabay, charts from TradingView.
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