Ethereum (CRYPTO: ETH) broke through $2,700 in a searing rally Tuesday, bolstered by improving macroeconomic conditions.
What happened: The second-largest cryptocurrency by capitalization soared over 8% in the last 24 hours, reaching levels last seen in the last week of February.
ETH's trading volume jumped 10.30% to nearly $35 billion, indicating high liquidity and trader interest.
The upsurge made ETH the biggest large-cap cryptocurrency gainer over the last 24 hours, significantly outpacing Bitcoin (CRYPTO: BTC) and XRP (CRYPTO: XRP).
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The rally also excited ETH's derivatives traders, as the Open Interest skyrocketed 16% to $32.28 billion in the last 24 hours, according to Coinglass, the highest since Jan. 24.
Nearly $160 million in bearish leveraged bets on ETH were erased, accounting for 64% of total short liquidations during the last 24 hours. Over 60% of all Binance traders with open ETH positions were long as of this writing.
Institutional investors started piling on the cryptocurrency. London-based digital asset investment firm Abraxas Capital purchased another $84.7 million in ETH, taking its total buys in the last week to $561 million, according to Lookonchain.
The uptick followed softer-than-expected consumer inflation data for April, easing fears about President Donald Trump’s trade policies and encouraging a risk-on mood.
Price Action: At the time of writing, ETH was exchanging hands at $2,638.49, up 8.63% in the last 24 hours, according to data from Benzinga Pro. The coin was still 13% away from reclaiming $3,000.
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