{"id":187876,"date":"2021-04-22T05:00:22","date_gmt":"2021-04-22T04:00:22","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=187876"},"modified":"2021-04-21T16:48:54","modified_gmt":"2021-04-21T15:48:54","slug":"institutional-demand-for-ethereum-surged-after-the-recent-flash-crash","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/institutional-demand-for-ethereum-surged-after-the-recent-flash-crash\/","title":{"rendered":"Data shows institutional demand for Ethereum surged despite the recent crash"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\"><a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum (ETH)<\/a> saw one of the most severe flash crashes that it has seen since the beginning of the year. The second-largest cryptocurrency by market capitalization saw its market value plunge by 18% within a few hours, shedding over 400 points.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Its price went from hovering at a high of $2,319 to a two-week low of $1,900.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The incident seems correlated with a coal and gas accident in Xinjiang, China, which caused a power outage. As <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> miners were forced to shut down, the network\u2019s hashrate fell by half, and all cryptocurrencies, including Ethereum, reacted quickly.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">More than $1.16 billion worth of long and short ETH positions were liquidated across the board. Despite the massive losses, it seems like institutional investors took advantage of the downswing to enter the market.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Data from analytics tool <a href=\"https:\/\/cryptoslate.com\/companies\/skew\/\">Skew<\/a> shows that <a href=\"https:\/\/cryptoslate.com\/companies\/cme-group\/\">CME<\/a>\u2019s Ether Futures volumes skyrocketed on Monday, Apr. 19.\u00a0\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Daily volume surpassed $360 million in a single day, and total open interest crossed $220 million. This was the highest trading volume observed since CME launched its Ethereum futures on Feb. 8. Such market behavior suggests that institutions could have bought the ETH dip.\u00a0<\/span><\/p>\n<figure id=\"attachment_187878\" aria-describedby=\"caption-attachment-187878\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-187878 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/skew_cme_ether_futures__total_open_interest__volumes_-1-1024x572.png\" alt=\"CME Ether Futures by Skew\" width=\"1024\" height=\"572\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/skew_cme_ether_futures__total_open_interest__volumes_-1-1024x572.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/skew_cme_ether_futures__total_open_interest__volumes_-1-300x168.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/skew_cme_ether_futures__total_open_interest__volumes_-1-768x429.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/skew_cme_ether_futures__total_open_interest__volumes_-1.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-187878\" class=\"wp-caption-text\">CME Ether Futures by <a href=\"https:\/\/cryptoslate.com\/companies\/skew\/\">Skew<\/a><span style=\"color: #5d5d5e; font-family: Merriweather, serif; font-size: 16px;\">\u00a0<\/span><\/figcaption><\/figure>\n<h2><span data-preserver-spaces=\"true\">Ethereum faces no resistance<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\"><a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock<\/a>\u2019s \u201cIn\/Out of the Money Around Price\u201d (IOMAP) model shows no supply barrier that will prevent Ethereum from recovering the losses incurred recently. Based on this on-chain metric, the only significant area of interest is $2,470, where roughly 3,800 addresses had previously purchased 17,100 ETH.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This area may have the ability to absorb some of the buying pressure seen recently. But if Ether can slice through this hurdle, it would likely aim for new all-time highs.<\/span><\/p>\n<figure id=\"attachment_187879\" aria-describedby=\"caption-attachment-187879\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-187879 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-21-at-5.00.14-PM-1024x395.png\" alt=\"In\/Out of the Money Around Price by IntoTheBlock\" width=\"1024\" height=\"395\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-21-at-5.00.14-PM-1024x395.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-21-at-5.00.14-PM-300x116.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-21-at-5.00.14-PM-768x296.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-21-at-5.00.14-PM-1536x593.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/Screen-Shot-2021-04-21-at-5.00.14-PM-2048x790.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-187879\" class=\"wp-caption-text\">In\/Out of the Money Around Price by <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock<\/a><\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">On the flip side, the IOMAP cohorts show that Ether sits on top of stable support. Over 300,000 addresses bought roughly 1 million ETH between $2,360 and $2,430. This crucial area of interest suggests that bears will struggle to push prices down.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Right now, the odds favor the bulls.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ethereum (ETH) saw one of the most severe flash crashes that it has seen since the beginning of the year. The second-largest cryptocurrency by market capitalization saw its market value plunge by 18% within a few hours, shedding over 400 points.\u00a0 Its price went from hovering at a high of $2,319 to a two-week low [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":187896,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[60923],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Data shows institutional demand for Ethereum surged despite the recent crash<\/title>\n<meta name=\"description\" content=\"Institutional demand for Ethereum is at an all-time high as many high-net-worth individuals enjoyed the recent volatility and bought ETH.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/institutional-demand-for-ethereum-surged-after-the-recent-flash-crash\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Data shows institutional demand for Ethereum surged despite the recent crash\" \/>\n<meta property=\"og:description\" content=\"Institutional demand for Ethereum is at an all-time high as many high-net-worth individuals enjoyed the recent volatility and bought ETH.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/institutional-demand-for-ethereum-surged-after-the-recent-flash-crash\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-22T04:00:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-04-21T15:48:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/04\/ethereum-insitutions.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Martinez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Martinez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/institutional-demand-for-ethereum-surged-after-the-recent-flash-crash\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/institutional-demand-for-ethereum-surged-after-the-recent-flash-crash\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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Martinez","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptoslate.com\/#\/schema\/person\/image\/","url":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-150x150.jpg","contentUrl":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-150x150.jpg","caption":"Ali Martinez"},"description":"Ali came across Bitcoin\u2019s whitepaper in 2014. He was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started accumulating BTC since then. Ali has been working as a content writer for some of the leading media outlets in the cryptocurrency industry.","url":"https:\/\/cryptoslate.com\/author\/ali-martinez\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/187876"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/148"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=187876"}],"version-history":[{"count":9,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/187876\/revisions"}],"predecessor-version":[{"id":187899,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/187876\/revisions\/187899"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/187896"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=187876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=187876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=187876"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=187876"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=187876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}