After rallying in excess of 15% over the past week, the second-largest cryptocurrency saw a 10% rally over the past few hours, reaching as high as $251. This is the highest price ETH has traded at since March 7th, just days before the capitulation that brought Bitcoin to $3,700 and ETH to $88.
Ethereum price chart from TradingView.com
Like with the Bitcoin surge, few investors expect this upswing in the value of Ethereum.
Skew.com, a crypto derivatives tracker, has found that approximately $500,000 worth of ETH short positions were liquidated on BitMEX alone. Though this $500,000 adds to the millions of liquidations that have taken place over the past three days.
The altcoin saw fewer liquidations than the Bitcoin market because it is relatively small. Also, ETH was already showing it had an upward skew prior to this latest jump higher, meaning traders were largely prepared.
More Upside In the Works for Ethereum
As Bitcoin just passed $10,000, all eyes are currently on the foremost cryptocurrency.
Fortunately for bulls, most analysts believe that more upside is in the works for BTC, and, as a result, ETH should move higher as well.
Galaxy Digital co-founder and CEO Mike Novogratz recently said the following:
“$BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10k goes it will move fast. Get on the train,” Novogratz said.
Others shared this position.
A prominent crypto trader shared that as it stands, there are few asks (sell orders) on BitMEX for Bitcoin, showing that bulls mean business and bears are hesitant to interrupt.
Update: a prominent Wall Street investor and analyst is expecting Ethereum to outperform. He wrote shortly after the breakout in reference to the chart below:
It even looks like Ether will outperform Bitcoin at some point (no position yet).
It even looks like Ether will outperform Bitcoin at some point (no position yet). pic.twitter.com/nMg1Qer0IB
— Raoul Pal (@RaoulGMI) June 2, 2020
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