On Tuesday, the broader cryptocurrency market shot up straight by 6% adding $50 billion in market cap. The world’s second-largest cryptocurrency Ethereum (ETH) made the most gains shooting past more than 12% and hitting the $1,500 mark for the first time after the Merge event.
As of press time, ETH is trading at $1,483 with a market cap of $181.7 billion. Interestingly, an Ethereum whale wallet suddenly turned active on Tuesday, for the first time in six years moving more than $20 million in value. As per reports, Ethereum whale moved 15,000 ETH to an empty wallet. As on-chain data provider Santiment reported:
"An #Ethereum whale wallet that had not been active for 6+ years woke up today & moved $22.2M worth of $ETH to an empty wallet. $ETH‘s price is +8.1% since this transaction, briefly jumping over $1,500 for the 1st time since the #merge 6 weeks ago."
For a very long time, ETH was trading close to $1,200 under solid selling pressure. However, yesterday’s short squeeze led to more than $800 million in short liquidations in the market, in the last 24 hours. A majority of these liquidations happened just in the last 12 hours.
Ethereum Whale, ETH and S&P 500
Yesterday’s sharp rise in the ETH price and the broader crypto market followed a strong rally in the U.S. equity market. Ethereum (ETH) has been showing a greater correlation with S&P 500 which gained more than 1.63%. As per data provider Santiment:
"Ethereum has surged to $1,415 on a breakout Tuesday for #crypto. The #Dollar value has dropped fairly notably today, and its growth coming to an end (or at least a pause) would be a key component to the next breakout of #cryptocurrency market caps."
Along with Ethereum, other cryptocurrencies with double-digit percentage gains are Cardano (ADA) and Dogecoin (DOGE). Here’s the key reason why Dogecoin is making solid gains in this rally. Bitcoin (BTC) is up 5% and has moved past the $20,000 level.
