• Crypto short traders lost $200 million in liquidations as Ether hit a two-month high.
• Ether-tracked futures saw liquidations worth about $110 million in both long and short positions.
• Ethereum’s bullish trend is further projected to gain momentum ahead of the scheduled March Shanghai upgrade.
The cryptocurrency market capitalization has seen a surge of about 3.18% in the past 24 hours. This is largely due to the bullish performance of Ether, the second largest cryptocurrency, which has hit a two-month high trading at around $1400. Despite the cautious tone in the US stock market, Ethereum (ETH) is showing strong signs of a recovery in the crypto market.
The strong performance of Ethereum (ETH) has caught many crypto traders off-guard who had bet on a market decline. This has resulted in about $200 million worth of short trades against price rises being liquidated in the past 24 hours. Additionally, an estimated $150 million worth of short trades were also liquidated earlier this week as Ethereum (ETH) and Bitcoin (BTC) broke past key resistance levels according to data from CoinGlass.
Other major altcoins like XRP and Solana have also registered gains of around 20%. Ether-tracked futures have also seen liquidations worth about $110 million in long and short positions. Bitcoin has seen liquidations worth about $77 million, while AVAX and GALA saw $4.5 million in liquidations.
Ethereum’s bullish trend is further projected to gain momentum ahead of the scheduled March Shanghai upgrade. This upgrade is designed to de-risk staking by allowing users to stake their coins in a more secure environment. Additionally, the upgrade will also reduce transaction fees, allowing users to save on gas costs.
The strong performance of Ethereum is an encouraging sign for the crypto market and could signal the start of a broader recovery in the market. The crypto market has proved to be resilient in the face of a cautious US stock market and the liquidations of short trades could be a sign of further gains in the coming weeks.