Ethereum Briefly Tops $4K, Market Depth Hits Multi-Year Highs

In a riveting turn of events, despite the Ethereum price showcasing a relatively slower movement compared to that of Bitcoin (BTC) and numerous altcoins, an intriguing phenomenon appears to have garnered noteworthy optimism on the world’s second-largest token by global market cap. According to a recent report, the Ethereum token seems to have demonstrated notable enhancements in liquidity on centralized exchanges globally.

This amassed significant attention on ETH, underscoring an increase in the availability of ETH tokens for trading on exchanges, further indicating heightened interest and activity surrounding the token within the exchange ecosystem.

ETH’s Liquidity: Diving Deep

Meanwhile, despite the token’s relatively slower price action, ETH’s improved liquidity flagged growing confidence and participation among traders and investors within the market. This could potentially contribute to the token’s long-term stability and market presence, adding a bullish tint to Ethereum amid the upcoming BTC halving.

The 2% market depth, which measures the quantity of buy and sell orders across exchanges, has notably increased from a yearly low of $255 million in October to a staggering $400 million at present.

These developments indicate a resurgence of market makers, who facilitate trading by providing liquidity. It further suggests that traders are benefiting from improved market conditions, with more opportunities for buying and selling ETH.

Also read: Bitcoin Whale Sparks 800 BTC Selloff Fears Post-CPI Data Release

BTC & ETH OI Hits ATH

On the other hand, open interest in perpetual futures contracts for both BTC and ETH has surged to unprecedented levels in USD. Trading in perpetual contracts has shown steady growth since the start of the year, hitting a two-year peak in early March and subsequently surpassing previous record highs.

This further underscored a sense of heightened interest in the assets among crypto market traders and investors, adding to the token’s bullish take.

Also Read: Apple Pay Joins Coinbase for Secure UK Cryptocurrency Transactions

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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