Traders are ramping up their leverage on Binance, pushing the exchange’s leverage ratio close to record highs. Substantial investment is showing confidence in Ethereum, but this also indicates increased risks. As bullish bets continue to surge, the question remains: Will ETH rise further or encounter a wave of sell-offs? Ethereum’s Estimated Leverage Ratio on Binance has reached near record levels, suggesting that traders are taking on considerable risk. The ratio, reflecting the connection between open futures positions and exchange reserves, was recorded between 0.6 and 0.7 during the reporting period. These levels often come before notable fluctuations.
At press time, ETH was trading around $3,900, suggesting that the market is at a pivotal moment. A drop below $3,800 could trigger long liquidations, while a rise above $4,000 might spark a short squeeze. Given the high levels of leverage, even small price changes can lead to substantial shifts in either direction. Large investors are starting to gather assets once more. In this high-leverage environment, Ethereum’s key players are starting to redefine their roles. Data shows that wallets holding between 100 and 10,000 ETH have accumulated more than 218,000 ETH in the last week. This comes after the sale of around 1.36 million ETH between October 5th and 16th.
Confidence is rising among whales and sharks, suggesting that savvy investors may be preparing for a potential upward shift. Their buying behavior could provide crucial support to ETH’s value as fluctuations driven by leverage intensify. ETH stabilizes, but the momentum still reveals signs of fragility. At press time, Ethereum was trading at approximately $3,935, encountering difficulties in surpassing the $4K resistance level. The RSI showed a balanced momentum, implying that buyers had not completely taken charge yet. The MACD lines are still below zero, but a bullish crossover might happen if there is an uptick in trading volume.
Currently, the price movement has been limited between the 20-day EMA ($3,964) and the 50-day EMA ($4,126), reflecting a period of uncertainty. Overall, ETH seems ready for a notable shift; it’s either preparing for a surge past $4,000 or a decline below $3,800 to define the next clear path.