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The cryptocurrency market rallied on Wednesday, with Ethereum emerging as the standout performer.

Ethereum surged 7% in the past 24 hours, trading at $3,836, while Bitcoin, the largest cryptocurrency by market capitalization, gained 1%, reaching $96,719, according to data from CoinGecko.

The Crypto Fear & Greed Index points to "Extreme Greed" at 78, up from 75 last week when it indicated "Greed." The index ranges from 1 ("Extreme Fear") to 100 ("Extreme Greed"), reflecting the market's emotional state and sentiment.

Solana, often referred to as an "Ethereum killer," was also up 2%, pushing the total cryptocurrency market capitalization to $3.73 trillion.

Michaël van de Poppe, a crypto analyst, noted Ethereum’s growing momentum, noting a bullish divergence on the ETH/BTC relative strength index (RSI).

“ETH shows a ton of momentum as it’s facing its first resistance,” he said . “I’m pretty happy that we’re seeing this here, and I expect we will have massive momentum from the entire Ethereum ecosystem.”

Bitcoin Tanks in South Korea

Bitcoin prices plummeted on South Korean exchanges after President Yoon Suk Yeol declared martial law in a live address.

The president cited threats from “anti-state elements” and North Korea’s “communist forces” as reasons for the drastic move. The announcement triggered immediate market disruptions.

On Upbit, South Korea’s largest crypto exchange, Bitcoin prices dropped to as low as $65,000, representing a $30,000 discount compared to global prices.

Paul Howard, Senior Director at Wincent, explained to The Street Roundtable the dynamics behind the price drop.

“With a flight from risk assets, we saw BTC trade at almost a 30% discount onshore overnight, presenting a classic arbitrage opportunity. Market arbitrageurs can help manage volatility like this, but the current regulations are very clear, so the impact on global market prices was muted, with the country contributing on average 5% of market share,” he said.

The market's volatility led to the liquidation of 164,346 traders over the past 24 hours, totaling $418.73 million, per data from CoinGlass. Ethereum short positions accounted for $48 million of this, marking a significant impact on leveraged traders. A short position refers to a strategy where a trader bets that the price of an asset will decrease.

U.S. Stocks Rally

The S&P 500 climbed 0.6%, while the Nasdaq Composite rose 1.2%. Meanwhile, the Dow Jones Industrial Average added a 0.7% increase.

Investors are now eyeing U.S. employment data due Friday, with analysts polled by Dow Jones expecting 214,000 jobs to have been added in November.

Investors closely watch U.S. employment data as it provides insight into the health of the economy and labor market. Strong job growth signals economic resilience, which could influence Federal Reserve decisions on interest rates and monetary policy.