A market intelligence firm is warning traders that leverage is building up in Ethereum (ETH), creating volatility risk for bulls.
In a new thread on the social media platform X, the crypto analytics platform Altcoin Vector says that leverage risk is building within the second-largest digital asset by market cap despite ETH’s most recent price rise being backed by the spot market and exchange-traded funds (ETFs).
“ETH Futures OI (open interest) just hit a new ATH (all-time high) – double since May – and price is climbing with it. Unlike late 2024, this rise is backed by ETF inflows and spot momentum, but… OI at historic levels is a double-edged sword. Conviction is back, but leverage risk is building.”
Trending: Josh Hawley Introduces Bill to Codify Trump’s Rebate Check Suggestion – Here Are the Numbers
Source: Altcoin Vector/X
Ethereum is trading
Join the conversation!
Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!