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DailyBubble News

Ethereum’s $35 million shake-up: How ETH’s 7% hike triggered a 2-month high

Ethereum’s price surged by over 5% on 3 May, leading to a spike in short positions being liquidated. Coinglass reported that $35 million worth of ETH’s short positions were liquidated that day, compared to just $7.16 million in long liquidations. Liquidations occur in a derivative market when a trader’s position is forcibly closed due to insufficient funds. Short liquidations happen when the asset’s value suddenly rises, forcing traders with positions betting on a price decline to exit.

Santiment data showed that Ethereum closed above $3000 on 3 May after trading below that level for the month. The altcoin’s price continued to climb, with a 5% increase in the last 24 hours, reaching $3,104 at the time of writing. Despite the price rally, ETH’s derivatives market saw only a 2% increase in trading volume, with Futures open interest rising by 3% to $10.68 billion. However, Options volume dropped by over 50%, indicating less speculation on the coin’s future price movements.

The combination of minor growth in Futures trading volume and declining Options volume suggests that market participants are taking a cautious approach, avoiding significant bets on ETH’s future price direction. This “wait and see” strategy implies a lack of confidence in predicting where the market may go next.

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