Crypto News Today- Renewed ETF optimism sparks ether rally, resulting in over $280 million in short liquidations

Ether rally on renewed ETF optimism, leading to over $280 million in short liquidations

Crypto News– Volatility over the past 24 hours has led to a surge in liquidations on centralized exchanges, as ether jumped by more than 22%.

This rally is fueled by renewed optimism that the U.S. Securities and Exchange Commission might approve spot ether ETFs later this week. The first round of spot ether ETF deadlines is quickly approaching, with VanEck’s set for May 23 and Ark Invest/21Shares’ on May 24.

Increase in short positions being liquidated

According to data from CoinGlass, there have been over $350 million in liquidations across various centralized cryptocurrency exchanges in the past 24 hours. Of these liquidations, the majority, approximately $282 million, were from short positions.

Ether positions bore the brunt of these liquidations, totaling over $121 million in the past 24 hours, of which nearly $98 million were from short positions.

Liquidations occur when a trader’s position is forcibly closed due to insufficient funds to cover losses. This typically happens when market movements go against the trader’s position, depleting their initial margin or collateral.

Ether sees a surge in value leading up to spot ETF decision deadlines

As ether surged to a multi-month high of over $3,700, wiping out short positions in the process, Tuesday’s QCP Capital report suggested that if the SEC approves the two spot ether ETF filings this week, the digital asset’s upward momentum is likely to continue. Ether’s price soared by over 22% in the past 24 hours, reaching $3,785 at 9:49 a.m. ET, according to The Block’s Price Page.

During the same period, the GM 30 Index, which represents a selection of the top 30 cryptocurrencies, rose by 10% to 148.95.

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