• Crypto short traders lost $200M to liquidations as Ether hit a two month high.
• The crypto market capitalization rose by 3.18% in the past 24 hours.
• Ethereum (ETH) has rallied to a two-month high, confirming the crypto is well prepared for a recovery in 2023.
The cryptocurrency market has been on the rise for the past 24 hours, with the market capitalization increasing by approximately 3.18%. Ethereum (ETH) has seen a particularly strong surge, hitting a two-month high and trading at around $1400. This surge has caught crypto traders who had bet on a market decline off guard, resulting in $200 million worth of short trades being liquidated in the past 24 hours.
This bullish trend in the crypto market was in contrast to the cautious tone seen in the US stock market. Other major altcoins such as XRP and Solana also registered gains of around 20%. Ether-tracked futures saw liquidations of around $110 million in both long and short positions, while Bitcoin saw liquidations of around $77 million, and AVAX and GALA had liquidations of $4.5 million.
This surge in Ethereum has confirmed that the crypto is well prepared for a recovery in 2023. This is expected to gain even more momentum ahead of the scheduled March Shanghai upgrade, which is designed to de-risk staking by allowing users to collateralize their assets instead of their own ETH holdings. Furthermore, many blockchain projects are also beginning to build on Ethereum, increasing its usage and providing further support for its bullish trend.
The crypto market is likely to remain volatile in the short-term, as investors will continue to assess the market’s reaction to the US stock market’s cautious tone. However, the bullish trend in Ethereum and other altcoins is likely to continue, provided that the March Shanghai upgrade is successful and blockchain projects continue to build on Ethereum.