Whale grabs massive volume of Ethereum longs ahead of Merge update
Anonymous Ethereum whale seized $1.7 billion from Ethereum futures in just one hour, making it the highest hourly volume candle in market orders in seven months.
The large buying volume was not followed by a spike in short liquidations, which shows that the assets were not heavily pushed down despite the negative performance a few weeks back.
Such an increase in derivatives trading volume shows that Ethereum’s recovery rally is gaining momentum as traders begin to leverage their positions via long positions. It is also the first sign of an accelerating rally.
Whenever derivatives volume enters an uptrend, assets tend to rally more actively, and the volatility on the market spikes up. Starting from June 13, Ethereum’s average daily volatility was moving around the year’s low as Ether remained under-leveraged and traders were too afraid to support the second biggest cryptocurrency on the market.
Ethereum Rally Catalyst
The revelation of the Merge update date sparked a massive 50% surge on Ethereum as investors began to see more potential in the second-largest cryptocurrency after the massive network update took place. be much closer.
In addition to the resurrected price performance of Ethereum, we are seeing a continuous migration of miners from the blockchain to alternative currencies, including Ethereum Classic, which recently rallied by 40% as investors believe that it will inherit the hashrate of Ether in the future.
The network’s fundamental growth puts Ethereum ahead of Bitcoin in terms of market performance, with Buterin’s creation having beaten digital gold by almost 30% since the start of “The Merge” rally in the market.
At press time, Ethereum is trading at $1,544.
