The recent price surge of Ethereum highlights how the market reacts to macroeconomic shifts and institutional investment trends.
Market Balance and Liquidations
In the last 24 hours, Ethereum's price surged past $4,800, leading to significant liquidations in the cryptocurrency market. Approximately $388 million related to Ethereum were liquidated, which was part of a total of $769 million in liquidations affecting over 183,000 investment positions. This has once again highlighted the risks associated with leveraged trading, where unforeseen price changes can lead to automatic closure of positions. A notable incident involved the closure of a $10 million position on the OKX platform.
Factors Behind Ethereum’s Latest Peak
Ethereum’s nearly 15% rise coincided with statements from U.S. Federal Reserve Chairman Jerome Powell about potential interest rate cuts in September. During the same period, Bitcoin rose by 4%, reaching $113,000, while the CoinDesk 20 Index increased by 9%. However, analysts believe Ethereum's rise is also linked to an increase in institutional interest, as more investors are reallocating their assets in favor of this platform, underscoring its significance in the financial sector.
Expert Opinions and Future Outlook
Samir Kerbage, Investment Director at Hashdex, stated, "Ethereum’s new peak indicates that investor demand extends beyond Bitcoin. We anticipate Ethereum surpassing $10,000 upon seeing stablecoin solutions adopted for payments in the U.S." Experts agree that institutional backing and the adoption of Ethereum in the payment ecosystem could positively impact its price. Since the beginning of the year, Ethereum has gained 45% in value, indicating significant growth for the cryptocurrency, although current market volatility requires caution among investors.
Investors are advised to keep a close eye on developments within the cryptocurrency market and exercise vigilance given the dynamic changes and opportunities that may arise.
