Ethereum (ETH) Sees $38 Billion Volume Surge in 24 Hours: What’s the Cause?

The cryptocurrency market experienced a significant downturn today, with top digital assets witnessing a sharp decline in their values. Data from CoinGlass indicates that approximately $333 million was erased from the market within the past 24 hours. Of this amount, nearly $272 million resulted from long liquidations, as many traders had taken long positions in anticipation of positive market conditions before the sudden drop.

During this period, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, also faced a downward trend. Its price plummeted from approximately $2,659 to $2,421 in a span of 12 hours. Additionally, ETH recorded total liquidations exceeding $105 million over the past day, with long positions accounting for almost $94 million of the total liquidated amount.

Despite the crypto crash, Ethereum has shown signs of recovery. At the time of writing, ETH is trading at $2,516, marking a slight improvement from its recent lows. However, the coin remains down by 4.8% over the past day, and its market capitalization has declined by 4.69% to $302.97 billion. While market uncertainty persists, there are indications that Ethereum may be poised for a comeback.

Amidst the prevailing market negativity, ETH traders seem to be capitalizing on buying opportunities to inject positive momentum into the market. This behavior has contributed to the modest recovery of Ethereum’s price. Notably, the 24-hour trading volume of ETH has surged by 100.91% to reach $38.93 billion, according to CoinGlass data.

Furthermore, the Options Volume for Ethereum has witnessed a substantial increase of 96.18% to $874.02 million during this period. This surge in trading activity suggests heightened market participation, with a notable emphasis on buying activities while selling pressure appears to be subsiding. Given these dynamics, the recent market downturn could potentially be viewed as a corrective phase, signaling a potential rebound for Ethereum in the near future.