Ethereum (ETH) Skyrockets to a 2-Month High with a $35 Million Boost: The Impact of a 7% Surge
- Ethereum (ETH) experienced a significant price increase of over 5% on May 3, leading to a surge in liquidated short positions.
- Despite this price rally, ETH’s derivatives market saw a decline in activity, indicating a shift in trader strategy.
- On-chain data suggests that $35 million worth of ETH’s short positions were liquidated on May 3.
Ethereum’s price rally on May 3 led to a surge in liquidated short positions, however, the derivatives market saw a decline in activity, indicating a shift in trader strategy.
Ethereum’s Price Rally and Its Impact
On May 3, Ethereum’s price appreciated by over 5%, causing a significant increase in the number of short positions liquidated. According to on-chain data provider Coinglass, $35 million worth of ETH’s short positions were liquidated on that day. In comparison, long liquidations totalled just $7.16 million. Liquidations occur in an asset’s derivatives market when a trader’s position is forcefully closed due to insufficient funds to maintain it. Short liquidations occur when the value of an asset suddenly rises, forcing traders who have open positions in favor of a price decline to exit their positions.
Decline in Derivatives Market Activity
Despite the price rally, ETH’s derivatives market saw a decline in activity. T... Read the full article for FREE at COINOTAG!
