Whale Grabs Huge Volume of Ethereum Longs Ahead of Merge Update
An anonymous Ethereum whale stole $1.7 billion ether futures contracts 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 an increase in short liquidations, showing that despite the negative performance a few weeks ago, assets were not pushed down sharply.
Such a large surge in derivatives trading volume shows that Ethereum’s recovery rally is gaining momentum as traders begin to leverage their positions via longs. This is also the first sign of an accelerating rally.
Someone bought $1.7 billion $ETH futures contracts in an hour.
It is the largest hourly 7-month volume of market orders.
Live Chart 👇https://t.co/xoJRm65glZ pic.twitter.com/p2T3gKggwx
— Kate Young Ju (@kate_young_ju) July 19, 2022
Whenever derivatives volume enters an uptrend, assets tend to recover more actively and volatility in the market increases. As of June 13, Ethereum’s average daily volatility hovered around its yearly low as Ether remained under-leveraged and traders were too scared to support the second-largest cryptocurrency on the market.
Ethereum Rally Catalyst
The reveal of the merge update date led to a massive 50% surge in Ethereum as investors began to see more potential in the second largest cryptocurrency after the massive network update got much closer.
In addition to Ethereum’s revived price action, we are seeing a continuous migration of miners from the blockchain to alternative currencies, including Ethereum Classic, which recently gained 40% as investors believe it will inherit Ether’s hashrate in the future.
The underlying growth of the network puts Ethereum ahead of Bitcoin in terms of market performance, as Buterin’s creation has beaten the digital gold by nearly 30% since the market’s “The Merge” rally began.
At press time, Ethereum is trading at $1,544.